In a breaking news report, Facebook parent company Meta is facing accusations of violating Europe’s new digital competition rules with its “pay or consent” advertising model.
Reportedly, Meta launched a service called “Subscription for no ads” last year, offering European users of Facebook and Instagram the option to pay up to €12.99 ($14) a month for an ad-free experience. Alternatively, users can choose to accept personalized ads.
The European Commission issued a statement on Monday expressing concerns that this binary choice forces users to consent to the use of their personal data without providing them with a less personalized but equivalent version of Meta’s social networks.
If the Commission’s preliminary findings are confirmed, Meta could face a fine equivalent to 10% of its global annual revenue under the Digital Markets Act.
In response to the accusations, a Meta spokesperson stated, “‘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.”
This is a developing story, and updates will be provided as more information becomes available.
