Meta to receive a fine for “pay or consent” model
European Union is preparing to charge Meta Platforms Inc., the parent company of Facebook, with violating the bloc’s landmark digital rules. This development follows preliminary findings that express concern over Meta’s “pay or consent” model, which was introduced in Europe last November. According to the model, users can either consent to being tracked for advertising purposes to access free services on Facebook and Instagram or opt to pay to avoid data sharing.
Regulators argue that Meta’s approach may present users with a false alternative, effectively coercing them into consenting to data tracking due to the financial barrier. This model is seen as problematic because it potentially forces users to compromise their privacy in exchange for a free service, which goes against the principles of informed consent under the General Data Protection Regulation (GDPR). The European Commission has yet to comment on these preliminary findings.
This scrutiny of Meta comes on the heels of similar actions against other tech giants. Just last week, EU antitrust regulators charged Apple with breaching the bloc’s tech rules, a decision that could result in a significant fine. Apple is also facing another investigation regarding new fees imposed on app developers. These actions are part of the Commission’s efforts under the Digital Markets Act (DMA), which aims to curb the dominance of “Big Tech” firms and promote fair competition.
The DMA violations could lead to fines of up to 10% of a company’s global annual turnover. For a company like Meta, this could translate into billions of euros, underscoring the EU’s commitment to enforcing digital regulations and protecting user privacy. The outcomes of these investigations will be closely watched, as they set important precedents for how major technology companies operate within the European market.
