The European Union is poised to accuse Meta, the parent company of Facebook (META.O), of violating the bloc’s significant digital regulations, according to a report from the Financial Times on Monday, citing sources familiar with the matter.
In preliminary findings expected to be released this week, regulators will express concerns about Meta’s “pay or consent” model, the report states. Meta introduced a subscription service without ads for Facebook and Instagram in Europe last November, offering users a choice to either consent to tracking for a free service funded by advertising or pay to opt out of data sharing.
According to the FT, regulators are likely to argue that Meta’s presented choice risks misleading users, as the financial barrier could pressure them into consenting to their personal data being tracked for advertising purposes.
Neither Meta nor the European Commission immediately responded to Reuters’ requests for comment.
This development follows EU antitrust regulators’ recent accusation against Apple (AAPL.O) for breaching the bloc’s tech rules, potentially resulting in a substantial fine for the iPhone maker. Apple is also under investigation for new fees imposed on app developers, marking the Commission’s first charge under its Digital Markets Act (DMA), designed to curb the influence of ‘Big Tech’ firms and promote fair competition among smaller rivals.
DMA violations could lead to fines of up to 10% of a company’s global annual turnover.
