Meta’s latest Facebook and Instagram revenue model is already under legal scrutiny

Meta logo on smartphone stock photo (6)
Credit: Edgar Cervantes / Android Authority
  • The European Commission says that Meta’s advertising model on Facebook and Instagram may violate the Digital Markets Act.
  • Users are given a choice between allowing personalized ads or paying for an ad-free experience, which the Commission argues restricts user consent.
  • Meta could face substantial fines if it fails to address the Commission’s concerns and comply with the DMA.

In a significant blow to Meta, the European Commission today issued a preliminary ruling that the tech giant’s ‘pay or consent’ advertising model for Facebook and Instagram violates the Digital Markets Act (DMA).

The DMA, a landmark piece of EU legislation, empowers users to decide how their data is used and ensures that smaller companies can compete with tech giants on equal footing. The DMA requires gatekeepers — companies with significant influence in digital markets — to obtain explicit consent from users for data collection and usage. If users refuse, they should still be able to use an equivalent, less personalized version of the service.



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