Meta faces billion-dollar fine

On July 1, 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 must agree to share personal data with the platform to serve targeted ads to continue using the free service.

Meta faces multi-billion dollar fine from EU.

However, the European Commission (EC) believes 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, or from charging for it. However, Meta should have a free version that uses less personal data for users who do not agree to share their data.

If the EU determines Meta violated the bloc's competition rules, Facebook's parent company could face fines of up to 10% of its global revenue, or $13.5 billion, and up to 20% for repeated violations.

In light of the situation, a Meta spokesperson said: "We look forward to further constructive dialogue with the European Commission to conclude this investigation."

Meta becomes the second company after Apple to be accused of violating the EU's DMA, which sets new rules for some of the world's biggest tech companies and helps regulators quickly address anti-competitive behavior.

Last week, the EC accused Apple of failing to comply with the DMA Act by prohibiting app developers from guiding customers to make purchases in different ways.

The charges, which the EU calls preliminary findings, do not necessarily mean that Meta will ultimately be found to have broken the law. Meta will have the opportunity to review them and respond to the commission, which 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