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EU accuses Meta of violating antitrust laws
(MENAFN) European Union antitrust regulators have formally charged Meta, the parent company of Facebook, asserting that its new ad-supported social networking service breaches the bloc's significant tech regulations. The European Commission (EC) announced on Monday that Meta's 'pay or consent' advertising approach, implemented across its platforms like Facebook and Instagram in Europe, does not comply with the European Union's Digital Markets Act (DMA).
According to the EC's preliminary assessment, Meta's advertising model forces users into a binary choice: either pay a subscription fee or consent to the use of their personal data for targeted advertising. The commission argues that this setup fails to provide users with a genuine alternative that offers an equivalent social networking experience without extensive data processing.
In a statement, European Union regulators emphasized that Meta's policy does not align with their goal of empowering users to control their data. They pointed out that under the DMA, companies must offer users the option of a less personalized ads experience alongside the choice for targeted advertising based on data consent.
Meta, in response, defended its ad-supported subscription model, asserting that it adheres to the direction set by Europe's highest court and complies with the DMA. A spokesperson for Meta expressed readiness for constructive discussions with the European Commission to resolve the investigation.
The clash between Meta and European Union regulators underscores ongoing tensions over data privacy and market dominance in the tech industry, highlighting the challenges of implementing regulatory frameworks across multinational digital platforms. European Union Antitrust Chief Margrethe Vestager reiterated the commission's commitment to ensuring user empowerment and data protection amidst evolving digital landscapes.
According to the EC's preliminary assessment, Meta's advertising model forces users into a binary choice: either pay a subscription fee or consent to the use of their personal data for targeted advertising. The commission argues that this setup fails to provide users with a genuine alternative that offers an equivalent social networking experience without extensive data processing.
In a statement, European Union regulators emphasized that Meta's policy does not align with their goal of empowering users to control their data. They pointed out that under the DMA, companies must offer users the option of a less personalized ads experience alongside the choice for targeted advertising based on data consent.
Meta, in response, defended its ad-supported subscription model, asserting that it adheres to the direction set by Europe's highest court and complies with the DMA. A spokesperson for Meta expressed readiness for constructive discussions with the European Commission to resolve the investigation.
The clash between Meta and European Union regulators underscores ongoing tensions over data privacy and market dominance in the tech industry, highlighting the challenges of implementing regulatory frameworks across multinational digital platforms. European Union Antitrust Chief Margrethe Vestager reiterated the commission's commitment to ensuring user empowerment and data protection amidst evolving digital landscapes.
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