Uh-oh! Meta could be facing a big fine for violating the EU’s Digital Markets Act

In late June, the European Union dropped a bombshell, revealing that Apple had violated the rules of the Digital Markets Act (DMA) for the first time since its inception in March. Now, it’s Meta’s turn to face the music, as the EU accuses Facebook and Instagram’s parent company of DMA violations as well. Following the enactment of the DMA, the European Commission wasted no time in launching investigations into Apple, Meta, and Alphabet, the parent company of Google.

What’s the issue with Meta? The Commission is displeased with Meta’s “consent or pay” scheme, where users must choose between using the apps for free and agreeing to share their data or paying to keep their information private. The Commission criticizes Meta for not offering a middle ground where users can still access the same service without compromising all their personal data. Additionally, Meta doesn’t allow users the choice to keep their personal information separate.

Adding to Meta’s troubles, the Commission is demanding that they provide a free alternative that doesn’t involve a fee. The EU watchdogs have until the end of March 2025 to conclude their investigation and deliver a final verdict. If Meta is found guilty of violating the DMA, they could face a hefty fine equivalent to ten percent of their annual global revenue.

Despite the accusations, Meta maintains its innocence and denies any wrongdoing. Meta confidently stated, “Charging for an ad-free experience is within the bounds of the DMA and the highest court in Europe. We are prepared to engage with the European Commission to resolve this matter and bring the investigation to a close.”