Meta, the parent company of Facebook, is facing accusations of violating Europe's new digital competition rules with its 'pay or consent' advertising model. The company introduced a service called 'Subscription for no ads' last year, allowing European users to pay a monthly fee for an ad-free experience or accept personalized ads.
The European Commission has expressed concerns that this binary choice forces users to consent to the use of their personal data without providing a less personalized but equivalent version of Meta's social networks. If the Commission's preliminary findings are confirmed, Meta could face a fine of up to 10% of its global annual revenue under the Digital Markets Act, potentially amounting to $13.5 billion based on its 2023 results.
