The European Union is signaling that Meta’s tactic of forcing users to choose between subscription or tracking consent will not be accepted under new digital governance rules.
Digital EVP and competition chief Margrethe Vestager expressed doubts about Meta’s privacy fee, indicating the need for the company to comply with the Digital Markets Act.
The EU is focused on restricting Big Tech’s dominance in digital markets and preventing unfair practices, with Meta designated as a gatekeeper under the DMA.
Meta’s compliance with the Digital Services Act is also under scrutiny, especially regarding consent for ads processing and the use of economic coercion tactics.
The EU has requested information from Meta on its compliance with the DSA and the impact of its ad-free subscription model.
Concerns have been raised about Meta’s paywall and its impact on user choice, leading to complaints from consumer protection groups and privacy rights campaigners.
The EU is emphasizing the importance of fair consumer choices and transparency in economic decisions, particularly in the context of Meta’s subscription model.
Privacy rights campaigners argue that Meta’s pricing for the ad-free subscription is disproportionate and may constitute manipulation through economic coercion.
The Commission is expected to enforce regulations and penalties on Meta if compliance issues persist, especially under the DMA.
The EU will assess Meta’s compliance with the DMA and take enforcement action if necessary, highlighting the importance of consent mechanisms and user choice in data processing.
