Facebook’s parent firm has reportedly refused to make further changes to its controversial pay-or-consent model
Facebook’s parent company, Meta, is facing fresh EU antitrust charges and multi-million daily fines after reportedly refusing to further amend its controversial pay-or-consent model, according to Reuters.
Meta’s model, which was introduced in the EU in November of 2023, requires users to pay a subscription fee if they want to use Facebook and Instagram without having their data tracked or being bombarded with personalized ads. The initial mobile subscription cost €12.99 (over $15) per month.
EU regulators say the model breaks the rules of the Digital Markets Act (DMA), which requires large tech companies, known as ‘gatekeepers’, to offer alternative versions of their services that use less personal data but still work just as well. In April, the US tech giant was fined €200 million ($234 million) for not following this rule.
Read more Pornhub threatens to pull out of FranceIn 2024, the corporation, which also owns WhatsApp, did reduce its use of personal data and halved the subscription fee, but the European Commission held that the changes are insufficient. Last month, it warned the company that it could face daily penalties of up to 5% of its global turnover if further changes were not made. Based on its 2024 revenue of $164.5 billion, the company could face daily fines of up to $22.5 million.
However, the US tech giant insists it “will not propose additional changes unless circumstances change,” Reuters wrote on Friday, citing people with direct knowledge of the matter.
Meta declined to comment but has previously stated it believes it is compliant with the DMA, Reuters noted. The company also defended its model as a legitimate business approach and accused the European Commission of unfairly targeting its business practices.
READ MORE: EU orders Meta to pay $800mn fine
The dispute reflects a broader clash between EU regulators and Big Tech platforms over digital competition. The DMA, which took effect in 2023, aims to curb anti-competitive behavior and promote fairness in online markets.
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