Meta’s 'pay-or-consent' ad model fails to comply with EU competition rules: European Commission

Meta's “pay or consent” advertising model aimed at Facebook and Instagram users in Europe fails to comply with the Digital Markets Act (DMA), the European Commission said Monday in a preliminary finding.

EU regulators want equivalent services for users who do not want to pay for an ad-free experience or consent to the company collecting their personal data.

Online platforms often collect personal data through their own services and those of third parties to provide online advertising services, the commission said.

It said this gives them potential advantages over their competitors and thus creates gaps between other online social networking services.

Under the DMA, gatekeepers must obtain users' consent for the collection of personal information and, if a user refuses this consent, they must have access to a less personalized but equivalent alternative.

In particular, Meta's model does not allow users to opt for a service that makes less use of their personal data but is equivalent to a service based on "personalized advertising,” the commission asserted.

It also said that in order to ensure compliance with the DMA, users who do not consent should be able to access an equivalent service that makes less use of their personal data, in this case for the personalization of ads.

If the preliminary views are finally confirmed, the commission may decide to impose a fine of up to 10% of Meta's total worldwide turnover.