Mobile Dev Memo Podcast
Season 3, Episode 20: The DMA, Personalized Advertising, and Digital Deglobalization
Jul 9, 2024
Discussing Europe's concerns over Meta's 'pay or okay' model, the podcast analyzes the implications for data aggregation, GDPR compliance, and big tech firms under the DMA. Exploring degrowth and green growth, it challenges notions of scarcity and austerity while examining the impact of personalized advertising and digital deglobalization on the digital advertising ecosystem.
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Quick takeaways
- META's implementation of 'Pay or OK' model violates Digital Markets Act, leading to user consent and GDPR concerns.
- European Commission's stringent approach towards META may hinder competitive dynamics and innovation within the technology industry.
Deep dives
European Commission's Preliminary Findings on META's Use of Pay or OK Model
The European Commission's recent preliminary findings revealed that META's implementation of the Pay or OK model for its Instagram and Facebook products violates the Digital Markets Act. This model presents users with a choice: either allow data aggregation for personalized advertising in exchange for a free service or pay for a subscription without ads. The European Data Protection Board found META's use of personalized advertising in violation of the GDPR, leading to adjustments in legal bases under GDPR. The European Commission's complaints about META's use of the Pay or OK model are anchored in competition law under the Digital Markets Act, scrutinizing how data is combined across META's social media and ad platform services.
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