Facebook and Instagram's 'pay or consent' ad model violates the DMA, says the EU
The European Union charges Meta for violating Digital Markets Act with its ad model lacking a data-saving option. Meta faces potential fines up to $13.4 billion. Second DMA charge after Apple's.
Read original articleThe European Union has charged Meta, the parent company of Facebook and Instagram, with violating the Digital Markets Act (DMA) due to their "pay or consent" advertising model. The EU found that this model does not offer users a third option that uses less data for ad targeting but remains free to use, as required by Article 5(2) of the DMA. Meta's approach forces users to either pay for an ad-free experience or consent to personalized ads, without providing a middle ground. If found guilty, Meta could face fines of up to 10% of its global revenue, potentially amounting to $13.4 billion. Meta has the opportunity to respond to the charges, and the investigation is set to conclude next year. This marks the second charge under the DMA, following Apple's recent violation related to App Store policies limiting competition.
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For mega-platforms this is true for their customers and their providers. The amount of information allows them to abuse both sides of the equation.
So, removing targeted as altogether would be a better option. And with that "personalized algorithms" that maximize companies profits extracting maximum value form consumers and producers.
IMHO, the system needs to be revamped, at least against commercial actors: all complaints should be logged in a public register, and individuals should have the right to add a complaint of their own to an already existing one, so that there is public knowledge of suspected bad actors.
Payment options:
Paid only - allowed Paid OR Personalized Ads - not allowed Paid OR Personalized Ads OR Non-Personalized Ads - allowed
I finally accepted the terms two weeks ago, but honestly that feels forced.
It's wild that nobody talks about it.
Facebook being a paid app was like a joke for a long time until now.
That would eliminate ads, but also surveillance and feed manipulation. Let me actually control my own feed.
Ads are just one way Facebook uses surveillance to manipulate its users. They use follow and like choices as surveillance info to insert unrequested “sticky” posts, instead of just honoring them as user features.
It says
Consent should not be regarded as freely
given if the data subject has no
genuine or free choice or is unable to
refuse or withdraw consent without
detriment.
https://gdpr-info.eu/recitals/no-42/Wouldn't having to pay be considered a detriment, and therefore make the consent invalid under the GDPR?
From what I could see, it's a novel interpretation of Section 5(2). The original section is about "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".
But this is to do with combination, not access. This part:
> users who do not consent should still get access to an equivalent service which uses less of their personal data, in this case for the personalisation of advertising
is new and not in the set goals of DMA, but a unique interpretation to stop Meta from offering this.
Related: Original complaint: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_...
Kay Jebelli on why it's under DMA and not GDPR: https://medium.com/chamber-of-progress/the-hidden-reason-why...
At what point are private companies allowed to decide how to charge customers for the services they provide?
It feels like they are effectively saying that targeted ads should be illegal, but without the forthrightness to say that explicitly.
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