On July 1st, the EU accused Meta of violating the DMA Act regarding advertising. Specifically, last year, Meta introduced an ad-free subscription model for Facebook and Instagram users in Europe.
Accordingly, users pay a monthly fee to avoid data collection and use an ad-free version, or they must agree to share personal data with the platform for targeted advertising in order to continue using the free service.
However, the European Commission (EC) argues that Meta's approach is ineffective. The DMA does not prohibit Meta from using users' personal data for advertising purposes if the user gives permission, nor does it prohibit Meta from charging fees. Nevertheless, Meta should offer a free, less data-intensive version for users who do not consent to data sharing.
If the EU determines that Meta violated the bloc's competition rules, Facebook's parent company could face fines of up to 10% of its global revenue, equivalent to $13.5 billion, and up to 20% for repeated violations.
In light of the situation, a Meta spokesperson stated: "We look forward to a more constructive dialogue with the European Commission to bring this investigation to a close."
Thus, Meta becomes the second company to be accused of violating the EU's DMA (Demand, Discrimination, and Discrimination) Act, after Apple. This act sets new rules for some of the world's largest technology companies and helps regulators quickly address alleged anti-competitive practices.
Last week, the EC accused Apple of failing to comply with the DMA Act by prohibiting app developers from directing customers to make purchases through various means.
The allegations, which the EU calls preliminary findings, do not necessarily mean that Meta will ultimately be found in violation of the law. Meta will have the opportunity to review and respond to them to the commission. The commission will conclude its investigation into Meta by the end of March next year.
Source: https://kinhtedothi.vn/meta-doi-mat-voi-an-phat-hang-ty-usd.html
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