European Union regulators have accused Meta of violating the Digital Markets Act with its subscription option that allows users in the EU to pay for an ad-free experience on Instagram and Facebook. The subscription, ranging up to 12.99 euros per month, was seen as a “pay or consent” scheme that forced users to choose between paying for privacy or giving more personal data to Meta for targeted advertising.
Authorities argue that the subscription model violated the law by not allowing users to opt out of data collection while still receiving an equivalent service. Meta, on the other hand, believes that its subscription service is compliant with the Digital Markets Act and intends to work with regulators to resolve the investigation.
This development comes as part of a broader crackdown on large tech companies using their size to coerce users into accepting terms they would otherwise reject. The European Commission has until March to complete its investigation, with the possibility of Meta facing fines of up to 10 percent of its global revenue if found guilty.
This move follows similar charges brought against Apple last week for unfair business practices related to the App Store. Meta’s President, Nick Clegg, has voiced concerns about Europe’s regulatory complexity hindering economic growth, suggesting that companies are hesitant to introduce new products in the region. The outcome of the investigation could have significant implications for Meta’s business operations in the EU and beyond.
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