Facebook parent company Meta has announced plans to appeal a €200 million fine imposed by the European Union, following accusations that it violated digital competition rules under the bloc’s Digital Markets Act (DMA).
The fine, issued in April, targets Meta’s controversial “pay or consent” model, introduced in November 2023. The system requires users to either pay a subscription fee to avoid data tracking or consent to having their personal data used for targeted advertising on Facebook and Instagram.
“This decision is both incorrect and unlawful, and we are appealing it,” said Meta’s Vice President Tim Lamb in a blog post published Wednesday.
The European Commission concluded that Meta failed to offer an equivalent, less-personalized alternative to users who declined data tracking, a requirement under the DMA. It warned that Meta could face daily fines if it failed to comply within 60 days. That deadline expired last week, but the Commission said it is currently reviewing new information provided by the company to determine whether it is now in compliance.
The penalty and Meta’s data practices have drawn widespread criticism from digital rights advocates, who argue that forcing users to pay for privacy undermines fundamental protections.
Defending the company’s approach, Lamb cited a 2023 EU court ruling that he said allowed for subscription-based models as a lawful option under European law.
“Yet the [April] decision ignores this ruling,” Lamb wrote. “Instead, it claims that the [top EU court’s] crucial judgment is not relevant and incorrectly concludes that Meta’s user choice does not comply with the DMA. This stance is perplexing.”
The case marks one of the first major enforcement actions under the EU’s landmark Digital Markets Act, which aims to curb the power of big tech firms and ensure fair competition in the digital marketplace.
AFP
