Instagram ad-free subscription violation, The European Commission has announced that Meta’s “pay or consent” advertising model on Instagram violates the Digital Markets Act (DMA). Under this model, users in the EU must either agree to receive personalized ads or pay €12.99 (£11) per month to opt out.
The Commission’s preliminary view is that this binary choice does not comply with the DMA, which requires that users who do not consent to personalized ads should still receive an equivalent service with less data usage.
Meta argues that its subscription model aligns with European court rulings and DMA regulations. However, if found in breach of EU rules, the firm could face a fine of up to 10% of its global revenue. The EU insists that users must have more control over their data and access a less personalized ad experience.
This decision follows a recent accusation against Apple for breaching DMA laws with its App Store practices. As a designated “gatekeeper,” Meta faces stricter obligations to maintain fair competition in digital platforms. The European Data Protection Board (EDPB) has also raised concerns about Meta’s model, suggesting an alternative approach to providing ad-free services.
The Commission’s investigation, initiated in March, aims to ensure competitive practices in the digital advertising market and will conclude within the next 12 months.
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