Meta's Advertising Model Breaches Digital-Competition Law, EU Says
By Mauro Orru
The European Union said Meta Platforms' pay or consent advertising model doesn't comply with the bloc's sweeping digital-competition law.
The European Commission, the EU's executive arm, said it had informed the tech giant of its preliminary findings that Meta's advertising model forces users to consent to the combination of their personal data in breach of the Digital Markets Act.
"Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a close," a Meta spokesperson said.
Under the Digital Markets Act, some of the world's biggest technology companies that the bloc considers as gatekeepers must comply with rules aimed at boosting competition in digital advertising, online search and app ecosystems.
Gatekeepers must seek users' consent to combine their personal data between various platform services and provide options for a less personalized but equivalent alternative if users refuse to have their data combined.
Companies found to be in breach of the law face fines of up to 10% of their global revenue that can go up to 20% in case of repeated infringement.
The EU opened proceedings against Meta toward the end of March and it expects to complete its investigation within a year.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
July 01, 2024 06:16 ET (10:16 GMT)
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