Meta Challenges €200 Million EU Fine Under Digital Markets Act
Meta has publicly opposed a €200 million fine from the European Commission under the Digital Markets Act (DMA). The fine targets Meta's "pay-or-consent" model, introduced in late 2023, which gives users the choice between accepting data tracking or paying for an ad-free experience. The EU argues this approach doesn’t provide a meaningful choice for user privacy, as many users may feel forced to consent rather than pay. Meta, however, claims that the EU is trying to handicap successful American companies by allowing European and Chinese firms to operate under different standards. Former U.S. President Donald Trump also criticised the EU’s decision, suggesting it unfairly targets American businesses and could damage U.S.-EU relations.
The European Commission says Meta’s model breaks DMA rules, which require companies to offer a version of their service that uses less personal data. Meta has since made some changes, including a new ad option it says is more privacy-friendly, but the EU is still reviewing whether this meets the rules. Meta argues these changes hurt their business by forcing them to offer a less effective version of their platform. Meta also says it is giving users a real choice and believes it is following the law.
Although this specific ruling applies to Meta, Apple was also fined €500 million under the DMA in a separate case. Both rulings reflect a broader shift in how the EU is regulating big tech firms under the new law. The DMA is designed to protect users and ensure that all companies follow the same rules, particularly when handling personal data. It shows that the EU is trying to take more control over how large tech companies work. This could result in stricter regulations across all digital platforms. For advertisers, this creates new challenges. As rules around data tracking become stricter, running personalised ads may become more difficult and expensive, which could affect the overall performance of advertising campaigns.
Sources: Independent.ie, RTE
