EU regulators have accused Facebook owner Meta of violating new digital rules by compelling users to pay in order to avoid seeing ads. They argue that this model fails to provide users with a fair choice regarding their privacy preferences.

On Monday, the European Union accused Meta, the owner of Facebook, of violating the bloc's digital rules by introducing a paid option to use its platforms ad-free. This new system requires users to pay to avoid data collection or consent to their data being harvested by Facebook and Instagram to continue using the platforms for free.

If found in breach of the EU's Digital Markets Act (DMA), Meta could face significant fines, potentially amounting to billions of euros, unless it adjusts its model to comply with DMA regulations. Since November, Meta has offered European users the choice to subscribe to ad-free versions of Facebook and Instagram in an effort to meet DMA requirements.

However, the European Commission has now notified Meta of its initial assessment that this model "fails to comply" with the DMA. The EU's antitrust regulator criticized the model for coercing users into either consenting to data combination or losing access to personalized services without providing an equally functional non-personalized alternative.

In response, Meta maintains that its model is DMA-compliant and looks forward to continued discussions with the European Commission to resolve the investigation. The DMA aims to curb the dominance of large tech firms in digital markets and ensure a fairer online environment by mandating that "gatekeepers" like Meta offer users more choices and prevent them from being forced into data consent agreements.

European Commissioner Thierry Breton emphasized that the DMA aims to empower users to control their data usage and enable fair competition with tech giants on data access. The European Commission's decision on Meta's compliance with DMA regulations is expected by late March 2025, potentially resulting in substantial fines based on Meta's global revenue.