Meta violates European law due to 'no ads' service

Late last year, Meta launched a service called “Ad-Free Subscriptions,” which allows European Facebook and Instagram users to pay €12.99 a month to use ad-free versions. The alternative is to accept versions with personalized ads.

In a statement on July 1, the European Commission said that in its preliminary view, this option forces users to agree to share personal data to use Meta's social network with personalized ads, instead of being able to choose a less personalized version.

Meta's European headquarters in Dublin, Ireland. Photo: Shutterstock

If the Commission’s provisional findings are confirmed, the EU could fine Meta an amount equivalent to 10% of the company’s global annual turnover under the Digital Markets Act (DMA). Based on the company’s 2023 results, that would amount to $13.5 billion.

Margrethe Vestager, the European Commissioner for Competition Policy, noted in a statement on July 1 that Meta had collected personal data on “millions of EU citizens over many years.”

“We want to empower people to control their own data and choose less personalized ad experiences,” she said.

Michael Koenig, a senior official at the Commission, said Meta must provide users with an alternative to fully personalized advertising that does not rely on personal data. The Commission expects to conclude its investigation into Meta by the end of March next year.

Meta said it did not accept the Commission's findings. "The 'ad-free subscription' follows the direction of the highest court in Europe and complies with the DMA. We look forward to a constructive dialogue with the European Commission to conclude this investigation," a Meta spokesperson said.

The EU announcement comes a week after the Commission accused Apple of violating the DMA by preventing free app developers from directing consumers to cheaper services. Regulators are also investigating Google parent company Alphabet under the new law.

The DMA, which took effect in March, requires dominant online platforms to give users more choice and competitors more room to compete. Online platforms often collect personal data on their own and third-party services, using that data in digital advertising services.

Ngoc Anh (according to CNN)

Source: https://www.congluan.vn/meta-bi-cao-buoc-vi-pham-luat-phap-chau-au-voi-dich-vu-khong-quang-cao-post302034.html