Preliminary Findings: Meta’s Controversial Binary Choice Under Scrutiny
Preliminary findings by the European Commission investigating a controversial binary choice Meta has forced on regional users of its social networks, Facebook and Instagram, since last fall does not comply with the bloc’s Digital Markets Act (DMA).
Failure to abide by the ex ante market contestability regulation, which has applied to Meta and other so-called “gatekeepers” since March 7, could be extremely costly for the adtech giant. Penalties for confirmed breaches can reach up to 10% of global annual turnover or 20% for repeat offenses.
More significantly, Meta could finally be compelled to abandon a privacy-hostile business model that demands users to agree to surveillance ads as the entry price of its social networking services.
The EU announced the opening of a formal DMA investigation into Meta’s implementation of a “pay or consent” offer to users on March 25 – following months of criticism from privacy advocacy and consumer protection groups who also argue the subscription does not comply with the bloc’s data protection or consumer protection rules either.
Back in March, the Commission expressed concerns that Meta’s binary choice does not provide a real alternative for users who do not consent to their data being collected for ads, as required by the DMA.
The EU’s goal with the DMA is to level the competitive playing field by targeting various advantages gatekeepers can exploit due to their dominance, including in the arena of data.
Reporting its preliminary findings Monday, the Commission stated that the binary choice Meta offers forces users to consent to the combination of their personal data and fails to provide them with a less personalized but equivalent version of Meta’s social networks.
In response to the EU’s findings, Meta defended its approach by citing a previous EU court judgment, insisting that its paid subscription model follows the direction of the highest court in Europe and complies with the DMA.
The EU’s investigation isn’t over yet, but there is a limited window for Meta to respond to the preliminary findings before a final decision is reached.
BEUC, the European consumer organization, welcomed the preliminary findings and urged the EU to enforce its laws meant to protect consumers.
In conclusion, Meta may soon be forced to provide a non-binary, privacy-safe choice to users, in line with the EU’s regulations and commitment to protecting user data and privacy.