Meta Faces Potential $13.4 Billion Fine From EU
Meta today became the second company accused of violating Europe’s Digital Markets Act, a week after the EU threatened Apple with a $38 billion fine . While Apple focuses on handling external payment methods and third-party apps, Meta focuses on its main source of revenue: advertising on Facebook and Instagram.
In most countries around the world, Meta monetizes its sites through targeted advertising, meaning it collects your data to focus advertising on your interests. To try to comply with DMA privacy rules, the company allows European users to sign up for an ad-free plan for €9.99 per month (more if you add linked accounts or sign up through the app store), but the region now says that’s not the case. It’s enough.
In a preliminary ruling published on its website today, the European Commission said Meta should also give users access to a third option, which would be a free plan that would still show ads but use less personal data.
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“Meta has forced millions of users across the EU into a binary choice: pay or accept,” EU Internal Market Commissioner Thierry Breton wrote on X earlier on Twitter. “Our preliminary conclusion is that this is a violation of the DMA.”
Like Apple, Meta now has the ability to write protection. The European Commission says it will then “conclude the investigation within 12 months of the opening of the proceedings on 25 March 2024. “
If found guilty, Meta could be fined up to 10% of total global revenue, or about $13.4 billion based on 2023 figures .
Meta did not immediately respond to Lifehacker’s request for comment. However, spokesperson Matter Pollard told The Verge via email that “the ad ban follows the guidance of Europe’s highest court and is consistent with the requirements of the DMA… We look forward to further constructive dialogue with the European Commission to begin this investigation.” to completion.”