(BrightPress.org) – Meta has introduced a new way to comply with the EU’s Digital Markets Act (DMA). Last fall, they announced a subscription option for Facebook and Instagram users in the EU, the European Economic Area (EEA), and Switzerland. This subscription allows users to enjoy an ad-free experience.
Meta’s idea behind this subscription is to give users more privacy. Instead of seeing personalized ads, users can pay a fee and avoid ads altogether. The company argues that this option supports an inclusive, ad-supported internet.
The problem is that the ads come at a cost. People pay with their sensitive personal data, which Meta monetizes for targeted advertising.
This “opt-out” approach, where users either pay for privacy or consent to data collection to keep using the platforms for free, hasn’t been well received in the EU. According to the European Commission, Meta’s scheme doesn’t allow users to choose a service that uses less of their personal data but is otherwise the same as the ad-based service.
The Court of Justice of the European Union (CJEU) had previously endorsed Meta’s proposed scheme in 2023, which Meta claims complies with the DMA. The system forces users to pay for privacy, violating the Digital Markets Act. The law aims to prevent big tech companies from using their power to make users accept terms they wouldn’t otherwise agree to, including personal data collection.
Last year, Meta introduced the subscription to tackle regulatory issues in the region. This plan has now led to more legal challenges. EU regulators recently stated that Meta’s subscription, costing up to 12.99 euros a month, is essentially a “pay or consent” scheme. Users have to choose between paying a fee or giving more personal data to Meta for targeted ads.
If Meta loses this battle, it could face significant fines. The company might have to part with 10 percent of its global turnover, with fines reaching up to 20 percent for repeat infringements.
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