The DMA (Digital Markets Act), which officially came into effect in Europe in 2022, has been a major headache for big tech companies. Now, the European Union has announced that Meta, owner of Facebook and Instagram, has allegedly violated the DMA.
The European Commission has opened an investigation into Meta and its controversial “Pay or Consent” model. This model establishes two ways to access Meta’s platforms. The first allows us to use them for free, in exchange for consenting to data collection and advertising. In the second, we will have to pay to avoid giving away our data and remove the ads.
According to what we can read on Engadget, the European Commission is clear and explains that Zuckerberg’s company “does not allow users to opt for a service that uses less of their personal data but is otherwise equivalent to the service based on ‘personalized ads'”. In addition, it also does not allow users to “freely consent to the combination of their personal data”.
Based on this, the Commission has asked Meta to come up with an “alternative” that does not require the payment of any kind of fee. If Meta is ultimately found guilty of violating the DMA, it would have to pay a fine equivalent to 10% of its annual global revenue. The investigation will conclude in March 2025, so Meta still has the option to defend its position against the Commission.
Meta has not been the only company accused of not complying with the DMA. According to European Union authorities, Apple would also have violated the law. In this case, it would have been for not allowing App Store developers to inform users of alternative payment options to Apple’s ecosystem. This is the first action taken within the framework of the DMA.
