EU to Charge Meta Over 'Pay or Consent' Model
The European Union is reportedly planning to charge Meta Platforms Inc., the parent company of Facebook, for breaching its digital regulations under the Digital Markets Act (DMA). This legislation aims to enhance consumer choice and support the growth of European startups. The EU regulators are concerned about Meta's "pay or consent" model, which allows users to access social networks for free if they consent to data collection or pay to avoid data sharing. The EU contends that this model presents a "false alternative" to users.
If found in violation, Meta could face penalties of up to 10% of its global turnover, with the potential for fines to increase to 20% for any repeat offenses. This action follows a similar case against Apple Inc. and forms part of a broader EU effort to regulate the power of large tech firms and create a more level playing field for smaller competitors. Preliminary findings from the investigation are expected to be announced soon.
