Meta has recently introduced a new system for its Facebook platform, where users must either pay a nominal fee or consent to advertising tracking.
The EU Commission is coming down on big tech companies that do not comply with its recently upgraded Digital Markets Act (Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828) (the DMA). The recent tech company under fire is Meta, which introduced a new ‘pay or consent’ model for end consumers.
The newly introduced system requires users to pay a nominal fee to continue enjoying an ad-free experience on Facebook. Otherwise, they must consent to getting tracked for advertisement purposes, from which Facebook will generate adequate revenue. The EU Commission calls this a false alternative and one that forces users to share their personal information against saving money.
According to internal members with direct information on the matter, the EU Commission is planning to charge Facebook’s parent company with breaking the bloc’s landmark digital rules. The charge may include penalties totaling millions, as the concern revolves around digital user access and privacy rights. Meta and the EU Commission have not released any official statements, but the notice is expected to be released before the end of this week.
The EU Commission has already targeted another tech giant: Apple. The iPhone maker could face heavy fines for not complying with the bloc’s Digital Markets Act rules. One of the direct violations includes new fees imposed on app developers and restrictions on app marketplace transactions. The tech giant has now allowed developers to build app marketplaces on the App Store with unrestricted third-party transactions.
Apple has officially announced its steps to meet the compliance standards set by the EU Commission but also declared a list of risks associated with them. Features like Screen Time, parental controls, and Spotlight continue functioning and maintaining Apple’s security, privacy, and safety standards. Apple will neither facilitate nor place restrictions on in-app purchases, and Family Purchase Sharing, universal purchase, and Ask to Buy are not supported on alternatively distributed apps.
The EU Commission has also drawn a set of rules for using AI technology on consumer-facing digital platforms. These standards set a benchmark for all digital players to ensure maximum access with security, privacy, and informed risks communicated with the public.
