EU says Meta unsuccessful in following DMA in "pay or consent" advertising model
(MENAFN) The European Commission announced on Monday a preliminary finding that Meta's "pay or consent" advertising model, implemented on facebook and Instagram in Europe, does not comply with the Digital Markets Act (DMA). This model requires users to either pay for an ad-free experience or consent to the collection of their personal data for personalized advertising.
EU regulators argue that under the DMA, online platforms designated as gatekeepers must offer equivalent services for users who choose not to pay for ad-free experiences or decline consent for data collection. This requirement aims to provide users with alternatives that involve less personal data usage but are still functionally equivalent.
The commission highlighted that online platforms often gather personal data through their own services and third-party sources to facilitate personalized advertising. This practice, while common, can provide gatekeepers like Meta with competitive advantages and potentially exclude other online social networking services from the market.
According to the preliminary findings, Meta's current model does not sufficiently enable users to opt for a service that minimizes personal data usage while providing an experience equivalent to personalized advertising. This discrepancy raises concerns about compliance with the DMA's requirements.
To address these issues, the European Commission proposes that users who decline consent should have access to an alternative service that reduces the use of their personal data for ad personalization purposes. This approach seeks to ensure fairness and transparency in digital advertising practices across the EU.
If the preliminary findings are confirmed, the European Commission has the authority to impose fines on Meta of up to 10 percent of its total worldwide turnover. This regulatory action underscores the EU's commitment to enforcing digital market regulations that protect consumer rights and promote fair competition in the digital economy.
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