Meta violated European law due to its 'ad-free' service.

Late last year, Meta launched a service called "Ad-Free Subscription," allowing Facebook and Instagram users in Europe to pay €12.99 a month for ad-free versions. An alternative is to opt for personalized ad-supported versions.

In a statement on July 1st, the European Commission said that, in its preliminary view, this option forces users to agree to share personal data in order to use Meta's personalized advertising social network, instead of being able to choose a less personalized version.

Meta's European headquarters are located in Dublin, Ireland. Photo: Shutterstock

If the Commission's preliminary findings are confirmed, the EU could fine Meta an amount equivalent to 10% of the company's annual global revenue under the Digital Markets Act (DMA). Based on the company's 2023 results, that amount would reach $13.5 billion.

Margrethe Vestager, the European Commissioner for Competition Policy, noted in a statement on July 1 that Meta had collected personal data from "millions of EU citizens for years".

She stated, "We want to empower people so they can control their own data and choose less personalized advertising experiences."

Michael Koenig, a senior official at the Commission, said Meta must provide users with an alternative to fully personalized advertising that does not rely on personal data. The Commission expects to conclude its investigation into Meta by the end of March next year.

Meta stated that it does not accept the Commission's findings. "The 'Ad-Free Subscription' follows the directives of the European Supreme Court and complies with the DMA. We look forward to a constructive dialogue with the European Commission to conclude this investigation," a Meta spokesperson said.

The EU announcement comes a week after the Commission accused Apple of violating the DMA by preventing app developers from freely directing consumers to cheaper services. Regulators are also investigating Google's parent company, Alphabet, under the new law.

The DMA, which came into effect in March, requires dominant online platforms to offer users more choices and competitors more opportunities to compete. Online platforms typically collect personal data on their own and third-party services, using that data in digital advertising services.

Ngoc Anh (according to CNN)

Source: https://www.congluan.vn/meta-bi-cao-buoc-vi-pham-luat-phap-chau-au-voi-dich-vu-khong-quang-cao-post302034.html