Meta Charged with Violations of Digital Markets Act

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Violations of Digital Markets Act (DMA) by Meta

Recent news reveals that the European Commission has charged Meta with violations of the Digital Markets Act (DMA). The preliminary ruling states that Meta’s “pay or consent” advertising model for Facebook and Instagram users does not comply with Article 5(2) of the DMA.

Binary Choice Advertising Model

The investigation found that Meta’s advertising model presents users with a “binary choice,” forcing them to either pay a monthly subscription fee for an ad-free experience or consent to the ad-supported version. However, the DMA requires a third option that allows users to use a free version with less data for ad targeting.

Empowering Users’ Data Control

Margrethe Vestager, who leads the region’s competition policy, emphasized the importance of empowering citizens to control their data. The commission aims to provide users with the ability to choose a less personalized ads experience and have the option to consent to the combination of their personal data.

Violation Details and Potential Penalties

Under Article 5(2) of the DMA, gatekeepers like Meta must seek users’ consent for combining personal data and provide access to a less personalized alternative if consent is refused. If Meta is found in violation, the EU could impose fines of up to 10% of its total worldwide revenue, potentially amounting to $13.4 billion.

Response and Future Dialogue

Meta spokesperson Matthew Pollard stated that the subscription for an ad-free experience aligns with the DMA and looks forward to constructive dialogue with the European Commission. Meta has the opportunity to respond to the charges, and the investigation is set to conclude next year.

Implications and Industry Impact

Meta is the second company charged under the DMA, following Apple’s App Store policies violation. These actions by the European Commission signal a commitment to ensuring fair competition and data protection in the digital market, impacting tech giants and setting precedents for industry practices.

References

Fonte: The Verge – EU charges Meta with violations of Digital Markets Act

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