BRUSSELS, July 1 (Reuters) - Meta Platforms ( META ) was
charged by EU antitrust regulators on Monday for failing to
comply with landmark tech rules as they took aim at the U.S.
company's newly introduced pay or consent advertising model,
already the target of privacy regulators and activists' ire.
The tech giant launched the no-ads subscription service for
Facebook and Instagram in Europe last November, saying users who
consent to be tracked get a free service which is funded by
advertising revenues. Or they could pay for an ad-free service.
The European Commission, which acts as the EU competition
enforcer, said the binary choice breaches the bloc's Digital
Markets Act (DMA) which seeks to rein in the power of Big Tech,
as it sent its preliminary finding to Meta.
It said the binary choice forces users to consent to the
combination of their personal data and fails to provide them a
less personalised but equivalent version of Meta's social
networks.
"We want to empower citizens to be able to take control over
their own data and choose a less personalised ads experience,"
EU antitrust chief Margrethe Vestager said in a statement.
Meta said its model complied with a ruling from Europe's top
court.
"Subscription for no ads follows the direction of the
highest court in Europe and complies with the DMA. We look
forward to further constructive dialogue with the European
Commission to bring this investigation to a close," a Meta
spokesperson said.
Meta can tweak its advertising model to stave off a fine of
as much as 10% of its global annual turnover if found guilty of
DMA breaches. The Commission has until March next year to wrap
up its investigation.
Privacy activists and privacy watchdogs have also taken
issue with Meta's advertising model.
Reuters was the first to report that the EU competition
enforcer would charge Meta with non-compliance under the Digital
Markets Act.
The charge against Meta came a week after the EU watchdog
issued its first DMA charge against Apple ( AAPL ) for not
complying with the new rule.