Brussels, Belgium—The European Union (EU) accused Facebook owner Meta on Monday of breaching the bloc’s digital rules, paving the way for potential fines worth billions of euros.
The charges against the US tech titan follow a finding last week against Apple that marked the first time Brussels had levelled formal accusations under the EU’s ground-breaking Digital Markets Act (DMA).
The latest case focuses on Meta’s new ad-free subscription model for Facebook and Instagram, which has sparked multiple complaints over privacy concerns.
Meta’s “pay or consent” system means users have to pay to avoid data collection, or agree to share their data with Facebook and Instagram to keep using the platforms for free.
“Meta has forced millions of users across the EU into a binary choice: ‘pay or consent,'” the EU’s top tech enforcer, commissioner Thierry Breton, said.
The European Commission said it informed Meta of its “preliminary view” that the model the company launched last year “fails to comply” with the DMA.
The findings come after a probe into Meta began in March under the DMA, which forces the world’s biggest tech companies to give European users more choice online.
Meta insisted its model “complies with the DMA.”
“We look forward to further constructive dialogue with the European Commission to bring this investigation to a close,” a Meta spokesperson said.
Meta can now reply to the findings and avoid a fine if it offers an alternative to address the EU’s concerns.
If the commission’s view is confirmed, however, it can slap fines of up to 10 percent of Meta’s total global turnover under the DMA. This can rise to up to 20 percent for repeat offenders.
Meta’s total revenue last year stood at around $135 billion (125 billion euros).
The EU also has the right to break up firms, but only as a last resort.