Meta is under scrutiny for its compliance with the EU's Digital Markets Act (DMA), facing warnings of hefty daily fines unless it adjusts its data usage practices. The European Commission contends that Meta's 'pay-or-play' approach, requiring users to either consent to data use or pay for an ad-free experience, does not comply with the law. Despite Meta's tweaks to its advertising strategy, the Commission remains skeptical. Meta argues that the EU discriminates against its business model, claiming user choice is valid for all firms in Europe except itself.
Meta argues that offering users a choice between a subscription for an ad-free experience and a free ad-supported service is a legitimate model for all companies in Europe.
The European Commission warns that unless Meta complies with the Digital Markets Act, it may face daily fines that could exceed $150 million, causing significant operational impact.
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