EU Commission Says Meta’s “Pay or Consent” Model is Breaching the DMA

The European Commission has warned Meta today that its “pay or consent” advertising model for Facebook and Instagram users in the EU is breaching the Digital Markets Act (DMA). While the EU Commission investigation is ongoing, Meta is facing a fine of up to 10% of its total worldwide turnover.

To prepare for the regulatory changes affecting platforms designated as “gatekeepers” under the DMA, Meta introduced an ad-free subscription for Facebook and Instagram users in the EU back in November 2023. EU users can now either pay €9.99/month to use Facebook and Instagram without ads, or they can continue using both services for free with personalized ads.

In its preliminary ruling published today, the EU regulator explained today that the “binary choice” that Meta imposed on EU users back in 2023 violates the DMA. And it does so by not allowing EU users to use equivalent versions of its services that use less of their personal data.

“Under Article 5(2) of the DMA, gatekeepers must seek users’ consent for combining their personal data between designated core platform services and other services, and if a user refuses such consent, they should have access to a less personalised but equivalent alternative. Gatekeepers cannot make use of the service or certain functionalities conditional on users’ consent,” the Commission’s press releases reads.

In an email statement shared with The Verge, Meta spokesperson Matthew Pollard said that “Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a close.”

Meta isn’t the only big company charged with DMA violations by the EU Commission. Last week, the EU regulator also said that Apple’s steering rules for the App Store are not compliant with the DMA. The Commission also announced the opening of an additional investigation into Apple’s new business terms for iOS apps in the EU.