The EU has formally charged Meta with violations of its Digital Markets Act (DMA), marking the second such charge against the company in as many weeks. The European Commission’s preliminary ruling states that Meta’s “pay or consent” advertising model for Facebook and Instagram users breaches Article 5(2) of the DMA by not offering a third option that uses less data for ad targeting while remaining free to use. The investigation found that Meta forces users to either pay for an ad-free experience or consent to ad-supported versions, without providing a less data-intensive, free alternative.
Margrethe Vestager, who leads the EU’s competition policy, emphasized that Meta’s model fails to comply with the DMA’s requirement for gatekeepers to offer an equivalent service without forcing consent for personal data use. The commission highlighted that gatekeepers must allow users access to less personalized services if they refuse data combination consent. Meta’s current model does not meet this criterion, limiting users’ ability to control their data and choose less personalized ads.
Meta has been informed of the charges and has the opportunity to respond. If found in violation, Meta could face fines up to 10 percent of its worldwide revenue, potentially $13.4 billion based on 2023 figures, with penalties increasing to 20 percent for continued violations. Meta has stated it will engage in constructive dialogue with the European Commission to resolve the investigation.
