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this post was submitted on 01 Jul 2024
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This is the best summary I could come up with:
The European Commission writes in a preliminary ruling that the “pay or consent” advertising model that launched last year for Facebook and Instagram users runs afoul of Article 5(2) of the DMA by not giving users a third option that uses less data for ad targeting but is still free to use.
Regulators found in their investigation that Meta gives users a “binary choice” that forces them to either choose to pay a monthly subscription fee to get the ad-free version of Facebook and Instagram or consent to the ad-supported version.
Where Meta runs afoul of its rules, it says, is by not letting users opt for a free version that “uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ based service” and by not allowing them to “exercise their right to freely consent to the combination of their personal data.”
“Our preliminary view is that Meta’s advertising model fails to comply with the Digital Markets Act,” wrote Margrethe Vestager, who leads the region’s competition policy.
“Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA,” Meta spokesperson Matthew Pollard told The Verge in an email.
The commission asserted last week that Apple’s App Store “steering” policies don’t allow sufficient competition.
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