2 days Ago By Matt Binder
A European Commission (EU) investigation is spelling bad news for Facebook and Instagram. The EU has notified Meta, the parent company of Facebook and Instagram, that its "pay or consent" personalized advertising model violates the Digital Markets Act (DMA). "Our investigation aims to ensure contestability in markets where gatekeepers like Meta have been accumulating personal data of millions of EU citizens over many years," said the European Commission's Margrethe Vestager in a statement on Monday.
"Our preliminary view is that Meta’s advertising model fails to comply with the Digital Markets Act. And we want to empower citizens to be able to take control over their own data and choose a less personalized ads experience." The EU now puts the ball in Meta's court.
The social media giant now has the right to mount a defense to the findings and send a reply to the EU as the investigation continues. As per the law, the EU must conclude the DMA investigation within 12 months of the date, which started on March 25, 2024. If the investigation finds that Meta was in non-compliance with the DMA, the Commission can fine Facebook and Instagram's parent company a whopping 10 percent of its total worldwide turnover.
In March, Mashable reported about a number of EU investigations into Big Tech companies to determine their compliance with the newly enacted DMA. The DMA basically forces "gatekeeper" companies to open up their platforms to third-parties in order to spur competition. One of.
