The Digital Markets Act (DMA), the flagship of the European Union’s regulatory moves against tech giants, scrutinizes meta platforms again.
Meta’s controversial “pay or consent” policy raises serious questions about whether it is compatible with the principles of users’ data privacy and fair competition.
The European Commission is investigating Meta for potential violations of the DMA
According to information on the European Commission’s website, the European Commission has shared its preliminary findings with the company regarding Meta’s allegation that the social media platform violates the DMA. The Commission launched its investigation on March 25, 2024, and aims to complete it within 12 months.
Meta has the right to defend against the Commission’s allegations. The company can exercise this right by reviewing the Commission’s investigation file and responding in writing.
If the Commission’s preliminary findings are confirmed, Meta could be fined up to 10% of its worldwide turnover. In the case of repeat infringement, the fine could be up to 20%. In the case of systematic non-compliance, the Commission may force Meta to sell a business or part of it or prohibit it from purchasing additional services.
Apple’s first encounter with the DMA began with an investigation into its App Store apps. Meta’s policy is under EU scrutiny, forcing users to choose between allowing data tracking for targeted advertising or paying a subscription fee for ad-free access.
The European Commission’s preliminary findings suggest that Meta’s approach does not give users a real choice. By allowing data tracking and free access to platforms, Meta encourages users to sacrifice their privacy. Moreover, the subscription-based ad-free option is not economically accessible for many users.
Meta argues that it complies with EU law and gives users control over their data. However, the Commission is not yet convinced by this defense. If the investigation concludes that Meta is in breach of the DMA, the company will likely face severe sanctions that will seriously affect its operations.
The outcome of this investigation is of great importance not only for Meta but also for the entire tech industry. It could lead to a new approach to data collection and targeted advertising practices and accelerate the shift towards more privacy-oriented models. It could also reinforce the EU’s leadership in technology regulation and increase its influence on policymakers globally.
While Meta will have the opportunity to submit its own submission to the Commission, early indications are that the company faces a challenging process. The EU has taken a clear stance on resolutely implementing the DMA and protecting consumer rights. Meta’s “pay or give consent” policy contradicts these objectives.
In this case, the final decision will be a turning point for Meta and the DMA. It will demonstrate the potential of the EU’s new regulatory framework to limit the power of tech giants and create a fair, competitive digital environment for all.
Featured image credit: Muhammad Asyfaul / Unsplash
