Meta Charged Under EU Antitrust Law
Meta Charged Under EU Antitrust Law
💻Technology
Featured Chapters
Meta Charged Under EU Antitrust Law
00:00:05 - 00:00:08
Meta's 'Pay or Consent' Model
00:00:19 - 00:00:23
EU Charges
00:00:37 - 00:00:41
Potential Fines
00:00:50 - 00:00:54
Meta's Defense
00:01:08 - 00:01:11
Investigation Timeline
00:01:15 - 00:01:19
Broader Regulatory Context
00:01:18 - 00:01:22
Sources
Meta faces EU antitrust assault over data consent issues | Fortune
https://fortune.com/2024/07/01/eu-d...
Meta charged with violating Europe's landmark tech competition law, faces billions in fines
https://nypost.com/2024/07/01/busin...
No title found
https://www.france24.com/en/tv-show...
Meta accused of failing to comply with EU antitrust rules
https://www.cnbc.com/2024/07/01/met...
reuters.com
https://www.reuters.com/technology/...
Background Music: "SPACE" prod. Metzmusic
Transcript
Meta, the parent company of Facebook and Instagram, has been charged by the European Union for violating the Digital Markets Act, a landmark tech competition law.
The charges stem from Meta's 'pay or consent' advertising model, which offers users a choice between paying for an ad-free experience or consenting to the use of their personal data for targeted ads.
Meta introduced a subscription service where users can pay $14 monthly for an ad-free experience or agree to Meta using their personal data for targeted ads.
This model has been criticized for coercing users into either consenting to data amalgamation for personalized ads or paying for an ad-free experience, without offering a third option for less personalized ads without data tracking.
The European Commission has accused Meta of breaching the DMA, which aims to regulate tech giants designated as the internet's 'gatekeepers.'
The Commission argues that Meta's approach restricts users' consent over their personal data and does not provide a data-minimal service equivalent to personalized ads.
If found guilty, Meta could face fines up to 10% of its global annual revenue, potentially reaching around $13.5 billion based on its 2023 global sales of $134.90 billion.
"The European Commission criticizes Meta for not offering users the choice of a data-minimal service equivalent to personalized ads and for restricting users' consent over their personal data combination." Fortune, 2024
Meta defended its subscription plan, highlighting compliance with a recent European court ruling and the Digital Markets Act.
The company looks forward to engaging with the European Commission on the matter.
The investigation is anticipated to conclude by March 2025.
This legal action is part of a broader regulatory clash involving Meta, previously fined $1.3 billion by the EU for mishandling European users' data.
Additionally, Europe has raised concerns about Microsoft for potentially breaching the law by bundling Teams software with office productivity apps like Office 365 and Microsoft 365.
This is a developing story, and we will continue to update you as more information becomes available.
The charges stem from Meta's 'pay or consent' advertising model, which offers users a choice between paying for an ad-free experience or consenting to the use of their personal data for targeted ads.
Meta introduced a subscription service where users can pay $14 monthly for an ad-free experience or agree to Meta using their personal data for targeted ads.
This model has been criticized for coercing users into either consenting to data amalgamation for personalized ads or paying for an ad-free experience, without offering a third option for less personalized ads without data tracking.
The European Commission has accused Meta of breaching the DMA, which aims to regulate tech giants designated as the internet's 'gatekeepers.'
The Commission argues that Meta's approach restricts users' consent over their personal data and does not provide a data-minimal service equivalent to personalized ads.
If found guilty, Meta could face fines up to 10% of its global annual revenue, potentially reaching around $13.5 billion based on its 2023 global sales of $134.90 billion.
"The European Commission criticizes Meta for not offering users the choice of a data-minimal service equivalent to personalized ads and for restricting users' consent over their personal data combination." Fortune, 2024
Meta defended its subscription plan, highlighting compliance with a recent European court ruling and the Digital Markets Act.
The company looks forward to engaging with the European Commission on the matter.
The investigation is anticipated to conclude by March 2025.
This legal action is part of a broader regulatory clash involving Meta, previously fined $1.3 billion by the EU for mishandling European users' data.
Additionally, Europe has raised concerns about Microsoft for potentially breaching the law by bundling Teams software with office productivity apps like Office 365 and Microsoft 365.
This is a developing story, and we will continue to update you as more information becomes available.