Not only Apple, Meta besides punished by the EU for violating DMA

The EU fined EUR 200 million for violating the Digital Markets Act. Before We have reported an even higher EU punishment on Apple.

The European Commission has imposed a punishment of EUR 200 million on Meta for breaching EU Digital Markets Act (DMA), as reported by Ars Technica. The sanction is the consequence of an yearly investigation into the "Consent or Pay" model utilized by Meta on Facebook and Instagram platforms, which forced users to choose between consenting to track data for personalized ads and paid subscription for the version without advertising. This is the first punishment imposed on Meta under the DMA, which underlines the EU's determination to enforce fresh antitrust rules against technological giants.

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The "Consent or Pay" model, introduced by Meta in November 2023, enabled users in the EU to usage Facebook and Instagram for free in exchange for agreeing to combine their individual data between services to mark advertising. Alternatively, users could choose a paid subscription to avoid tracking. The European Commission has recognised that this model violates the DMA as it does not supply a "equivalent alternative" to those who do not consent to data processing, limiting their actual choice. In response, Meta modified the strategy in November 2024, reducing the amount of data utilized for advertising, but the EU continues to measure the compatibility of the fresh model with the rules.

Meta powerfully criticised the EU decision, setting the punishment as a ‘de facto customs tariff’ imposed on US companies. Joel Kaplan, head of Meta's global affairs, stated that the Commission's decision forces the company to change its business model, which could lead to offering users a "worser service" and generating extra costs of billions of dollars.

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The company announced an appeal against the penalty, arguing that the EU is unfairly treating American companies, while European and Chinese companies are subject to softer rules. The dispute exacerbates transatlantic tensions, especially in the context of the threats of the US president Donald Trump on introducing duties on countries punishing American companies.

The punishment for Meta is part of a broader EU package of actions to reduce the dominance of large technology platforms. DMA, introduced in 2023, requires alleged "gatekeepers", specified as Meta, to guarantee greater competition and choice for consumers. Although the current fine is comparatively low compared to possible sanctions (up to 10% of global yearly revenues), it shows that the EU does not intend to give way to fresh regulations. Faced with expanding regulatory force in the US, the company faces the challenge of reconciling global business models with EU requirements, which could affect its future advertising strategies.

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