The EU accused Meta of failing to comply with Union rules due to its model of paying for advertising on Facebook and Instagram or consenting to the use of personal data.
The EU Commission announced that US-based Meta has been notified of formal charges as part of an investigation into the compliance of its “pay or consent” advertising model with the Digital Markets Act (DMA).
“The Commission has a preliminary view that Meta’s ‘pay or consent’ advertising model is incompatible with the DMA,” the statement said, adding that this practice does not meet the requirements set out in Union rules.
In the statement, it was pointed out that in the Meta model, users cannot choose a service equivalent to a service that uses less of their personal data but includes personalized ads.
The model also does not allow users to exercise their right to freely consent to the merging of their personal data, the statement said, adding that according to EU rules, users who do not consent should have access to an equivalent service that uses less of their personal data.
In November, Meta began offering a monthly subscription option for users in Europe to access Facebook and Instagram ad-free.
Meta’s paid subscription option was complained about by consumer associations in Europe.
Under EU technology rules, large companies and digital platforms such as Meta are subject to stricter provisions.
The EU can impose fines of up to 10 percent of global turnover on companies that violate its digital laws.
