The “pay or consent” model, in which users of Meta services must consent to the use of personalized data for advertising or, alternatively, pay monthly for the service, violates the Digital Markets Act (DMA). The European Commission notified Meta, which also owns Facebook and Instagram, of a preliminary finding of violations on Monday.
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VHF: Switzerland will turn off analog radio at the end of 2024The choice between paying or consenting to the use of personalized data is not compatible with DMA, explains the Commission in a communication. Gatekeeper platforms must enable their users to use the services even if they do not consent to the use of their data for personalised advertising. Even in the event of an objection, the same services and functions must be made available to users with their consent. The Commission says it should not rely on consent for the use of data.
Competitive advantage through size
The important position of gatekeepers in digital markets allows them to impose terms and conditions on their large number of users, thanks to which they can collect a lot of personal data. This is a competitive advantage over smaller providers, as they have less access to such data and therefore face more difficulties in marketing online advertising services.
The European Commission argues that Meta does not allow its users to choose a service that uses less personal data but amounts to personalized advertising. To comply with data protection law, users would need access to such a version. Furthermore, Meta’s approach does not allow users “to exercise the right to free consent to combine their personal data.”
Preliminary determination in proceedings
The EU Commission has informed Meta of its preliminary findings. The company can now examine the documents and take a position. The Commission will complete its investigation within 12 months of the start of the procedure on March 25, 2024. “If the Commission’s preliminary view is ultimately confirmed, the Commission will take a decision concluding that Meta’s model is incompatible with Article 5(2) of the GDPR,” the statement said.
If Meta fails to comply with the rules, the Commission can fine the company up to ten percent of its total global turnover. Systematic non-compliance can result in tougher sanctions such as the sale of parts of the company.
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