European Union regulators have discovered that Meta, the parent company of Instagram and Facebook, has violated the bloc’s new competition law. This was found during a larger investigation into whether Meta is complying with the E.U.’s Digital Markets Act, the first antitrust law targeting Big Tech companies in a major economy.
Margrethe Vestager, the European Commission’s executive vice president for competition policy, stated that the goal is to give individuals more control over their data and provide them with the option to choose a less personalized advertising experience. If the commission upholds their preliminary findings, Meta may face fines of up to 10 percent of its annual global revenue.
The E.U. contends that Meta’s requirement for users to pay to avoid personalized ads infringes on their right to freely consent to the use of their personal data. Additionally, the company has failed to offer users an equivalent service using less personal data, as mandated by the Digital Markets Act.
Meta has defended its “subscription for no ads” model, stating that it believes it complies with the DMA. The company expressed willingness to engage in constructive dialogue with the European Commission to resolve the investigation.
Since the implementation of the DMA in March, the E.U. has taken swift action against tech giants such as Meta, Apple and Alphabet with a deadline of one year for investigations to be completed. Recent days have also seen regulator informing Apple and Microsoft that their business practices are in violation of antitrust rules which highlights EU’s commitment towards holding tech companies accountable and protecting consumer rights in digital marketplace .