EU to charge Meta over new digital regulations violation

The European Union (EU) is set to charge Meta, the parent company of Facebook, with violating its new digital regulations. Sources familiar with the situation revealed that EU regulators are concerned about Meta’s “pay or consent” model.

This model, introduced in November, offers a no-ads subscription service for Facebook and Instagram in Europe, where users either allow their data to be tracked for a free service funded by ads or pay to avoid data sharing.

The regulators argue that this model may present users with a false choice, pressuring them to consent to data tracking to avoid the financial cost.

Meta and the European Commission did not immediately respond to Reuters requests for comment. This development follows a recent charge against Apple by EU antitrust regulators for breaching the bloc’s technology rules, which could lead to a substantial fine for the iPhone maker.

The charge against Apple is the first under the EU’s Digital Markets Act (DMA), designed to limit the power of major tech companies and promote fair competition. Violations of the DMA could result in fines up to 10 per cent of a company’s global annual revenue.

Attribution: Reuters, The Financial Times