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EU Finds Meta's 'Pay or Consent' Model Violates Competition Rules

European Commission says Meta's "pay or consent" model breaks EU rules. Meta, owner of Facebook and Instagram, asks users in Europe to either accept being tracked for ads or pay to avoid them. The EU sees this as forcing users into a corner.

The Digital Markets Act (DMA) aims to stop big tech companies from using their power unfairly. Meta, seen as a "gatekeeper," needs user permission to track them. The EU thinks Meta isn't giving a real choice.

Meta could face big fines—up to 10% of its global income. The EU wants Meta to offer a free version with less personalized ads, not just a paid one. Meta argues it's following EU court rules, but the EU says Meta must explain why it doesn't offer a free, less personalized ad option.

The investigation isn't over, but the EU plans to finish by March 2025. Consumer groups are happy with the EU's move.

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