EU officials label Meta's pay-for-privacy model as illegal, requiring a middle ground option for users to opt out of targeted advertising. Meta faces potential fines if they fail to reach an agreement with regulators by March 2025.
EU deems Meta's pay-for-privacy model illegal under the Digital Markets Act.
European Commission emphasizes user consent and fair competition in tech enterprises.
Deep dives
Concerns over Meta's Pay-for-Privacy Model in the EU
The European Commission rejected Meta's pay-or-consent subscription model under the Digital Markets Act, deeming it illegal. Despite Meta's defense that the model aligns with the Court of Justice of the European Union's decision, the EU contends that the pay-or-consent approach violates user data rights. The issue revolves around the competitive edge Meta gains by amalgamating data from platforms like Instagram and its advertising arm. If no resolution is reached by March 2025, Brussels reserves the right to impose fines up to 10% of Meta's global turnover.
EU's Scrutiny of Tech Giants and Regulations
The EU recently rebuked US tech giants like Apple and Microsoft for breaching EU rules, highlighting concerns about the app store and market dominance abuse. The European Commission emphasizes the importance of user consent and fair competition among tech enterprises. The EU's regulatory actions reflect a broader effort to ensure data protection, privacy rights, and market competitiveness within the digital landscape.
In the latest big tech reprimand, European Commission officials say the tech giant must offer another option for EU users to opt out of targeted advertising.