Data protection - EU Commission takes aim at Facebook group Meta
Meta, the Internet conglomerate, is in conflict with the EU Commission over its "Pay for Privacy" model. According to the Brussels authority, users of Facebook and Instagram should not be required to choose between a monthly fee for an ad-free version and a free version with personalized advertising.
Meta's model does not allow users to choose a service that uses fewer personal data but is otherwise equivalent, the Brussels authority stated after an initial investigation. Additionally, the model does not allow users to exercise their right to freely consent to the processing of their personal data.
The Commission emphasized that its investigations are not yet completed. The preliminary findings of the Brussels authority refer to a procedure against Meta that the Commission initiated in March. Meta now has the opportunity to review the investigation files and respond in writing.
Since early March, companies have had to comply with the Digital Markets Act (DMA). The law aims to promote competition in digital services and provide better opportunities for new rivals. The assumption is that some large platform operators have become so powerful that they can cement their market position. The DMA aims to break this with rules for the so-called gatekeepers (gatekeepers). Among them are the US heavyweights Apple, Amazon, Microsoft, Alphabet, and Meta.
Possible consequences for Meta
The Commission aims to complete the proceedings opened in March within a year. Depending on the outcome of the investigation, the affected companies must take measures to address the concerns of the authority. Companies that do not comply with the law can be fined up to ten percent of their worldwide turnover. Repeat offenders can be fined 20 percent.
- The EU Commission in Brussels is challenging Meta's "Pay for Privacy" model in telecommunications, which includes Facebook and Instagram, as it believes users should not be forced to choose between a paid ad-free version and a free version with personalized advertising.
- Following an initial investigation, the EU Commission has expressed concerns that Meta's model does not allow users to opt for a service with fewer personal data intrusions, thereby violating data protection rules.
- The US-based tech giant, Meta, now has the opportunity to review the investigation files and respond in writing to the EU Commission, which initiated a procedure against them in March under the Digital Markets Act (DMA).
- The DMA, aimed at promoting competition in digital services and providing opportunities for new rivals, was implemented in March by companies operating in the EU, including Meta, Apple, Amazon, Microsoft, and Alphabet.
- Facing potential fines of up to 20% of their worldwide turnover for repeat offenses, Meta and other tech giants must comply with the EU Commission's concerns and address the issues raised by the DMA to avoid financial penalties.
