Mark Zuckerberg Meta news update July 2024

• Meta is facing challenges in the EU today.
• The European Commission has determined that Meta's 'pay or consent' advertising model violates the EU's Digital Markets Act.

The European Union has presented Mark Zuckerberg's Meta with some challenging news.

On Monday, the European Commission, the EU's executive body, disclosed its preliminary conclusion that Meta's 'pay or consent' advertising model contravenes the Digital Markets Act.

In 2023, Meta implemented a new model in the EU after a 2022 regulatory ruling required the company to permit users to opt out of personalized ads. The model offers users a choice: pay a monthly fee to avoid ads on Facebook and Instagram or continue with the free version and receive personalized ads.

EU regulators stated on Monday that the Commission's preliminary view indicates this binary option compels users to consent to the combination of their personal data, without offering a less personalized but equivalent version of Meta's social platforms.

Meta has the chance to address the preliminary findings in writing. The commission's investigation will be completed within 12 months from its commencement on March 25.

If the regulator ultimately finds Meta non-compliant, the company could be subject to penalties of up to 10% of its worldwide revenue.

According to a Meta spokesperson, "Our ad-free subscription service aligns with the highest court's directives in Europe and complies with the DMA. We anticipate further productive dialogue with the European Commission to finalize this investigation."

Meta faced regulatory scrutiny in the EU last year following a $1.3 billion fine for its transfer of Facebook users' data to the US.

Meta joins a list of tech giants accused of violating the DMA, which became effective in March.

The European Commission has recently notified Apple of its initial conclusions that the company's App Store policies breach the DMA, as they restrict app developers from directing consumers to alternative channels for offers and content.

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