European Union: Issued European Commission’s preliminary findings following investigation into Meta stating that the "pay or consent model" may be in breach of Digital Markets Act

On 1 July 2024, the European Commission sent its preliminary findings to Meta, indicating that its “pay or consent” advertising model breaches the Digital Markets Act (DMA) requirements. The model, introduced by Meta in November 2023, offers EU users of Facebook and Instagram a choice between a subscription for an ad-free experience or access to a version with personalised ads at no cost. The Commission's initial assessment suggests that this binary choice does not comply with Article 5(2) of the DMA, which mandates that users must have the option to choose a less personalised but equivalent service without consenting to the combination of their personal data. The investigation, coordinated with relevant data protection authorities, aims to ensure Meta provides an equivalent service option that respects users' consent rights. Meta now has the opportunity to respond to these preliminary findings. The Commission's final decision will be made within 12 months from the start of the proceedings on 25 March 2024.