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EU To Charge Meta Over “Pay Or Consent” Model
https://www.whatjobs.com/news/usa/us-business-news/eu-to-charge-meta-over-pay-or-consent-model
By Hugh Fort in US business news, posted July 1, 2024
The European Union is set to charge Facebook parent Meta with breaking the bloc's landmark digital rules.
The Financial Times reported regulators will say they are worried about Meta's "pay or consent" model, according to the report.
Meta launched the no-ads subscription service for Facebook and Instagram in Europe last November.
It says users who consent to be tracked get a free service which is funded by advertising revenues.
If they don't agree, they will have to pay not to have their data shared.
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According to the FT report, the regulators are expected to say that the choice presented by Meta risks giving users a false alternative.
They say the financial barrier forces them to consent to their personal data being tracked for advertising purposes.
The report comes after EU antitrust regulators last week charged Apple with breaching the bloc's tech rules.
This decision could result in a hefty fine for the iPhone maker.
Apple is also facing another investigation into new fees imposed on app developers.
The charge brought against Apple is the first by the Commission under its landmark Digital Markets Act (DMA).
The act seeks to rein in the power of 'Big Tech' firms and ensure a level playing field for smaller rivals.
DMA violations could result in a fine of as much as 10 percent of a company's global annual turnover.
Meta and the European Commission did not immediately respond to Reuters' requests for comment.
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