Facebook and Instagram’s ‘pay or consent’ ad model violates the DMA, says the EU
The EU has formally charged Meta with violations of its Digital Markets Act (DMA), marking its second such charge in as many weeks. 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...