The European Union accuses Facebook owner Meta of breaking digital rules with its paid ad-free option

LONDON (AP) — European Union regulators on Monday accused social media company Meta Platforms of violating the bloc’s new digital competition rules by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.

Meta has been giving European users the option since November to pay for ad-free versions of Facebook and Instagram as a way to comply with the continent’s strict data privacy rules.

Desktop browser users can pay about 10 euros ($10.50) a month, while iOS or Android users pay about 13 euros to avoid being targeted by ads based on their personal data.

The US tech giant launched the subscription option after the European Union’s top court ruled that under strict EU data privacy rules, Meta must first obtain consent before serving ads to users.

The European Commission, the EU’s executive arm, said preliminary findings of its investigation showed that Meta’s “pay or consent” advertising model violated the 27-nation bloc’s Digital Markets Act.

The Meta model does not allow users to exercise their right to “freely consent” to allow their personal data from its various services, including Facebook, Instagram, Marketplace, WhatsApp and Messenger, to be combined to target them with advertisements personalized online, the commission said.

The Meta model also does not offer users the option of a less personalized but equivalent service to its social networks.

The commission opened its investigation shortly after the regulation, also known as the DMA, came into force in March. It’s a comprehensive set of regulations designed to prevent technology “gatekeepers” from cornering digital markets under the threat of heavy financial penalties.

One of the DMA’s goals is to rein in the power of Big Tech companies that have collected large amounts of personal data about their users, giving them an edge over rivals competing in online advertising or social media services. The commission indicated that in order for Meta to comply, it would like to see a middle ground with an option that does not rely on fully sharing a user’s personal information.

“The DMA is there to give back to users the power to decide how their data is used and to ensure that innovative companies can compete on an equal footing with the tech giants when it comes to access to data,” said European Commissioner Thierry Breton , which oversees the bloc’s digital policy. in a statement.

Meta now has the chance to respond to the commission, which must conclude its investigation by March 2025. The company could face fines worth 10% of its annual global revenue, which could reach billions of euros.

“The ad-free subscription follows the direction of Europe’s highest court and respects the DMA,” Meta said in a statement. “We look forward to further constructive dialogue with the European Commission to conclude this investigation.”

Under the Digital Markets Act, Meta is classified as one of seven online gatekeepers, while Facebook, Instagram, WhatsApp, Messenger and its online advertising business are among about two dozen “core platform services” that require the most high level of control.

Kelvin Chan, The Associated Press