The EU is set to sue US-based Meta* for failing to comply with a new digital markets law, the Financial Times reports.
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In November 2022, the European Union adopted the Digital Markets Act (DMA). It forces equipment manufacturers to allow the installation of applications on devices not only in official application markets. For non-compliance, a fine of up to 20% of the company’s annual turnover is expected.
According to the Financial Times, the violation of the law occurs partly in the Meta* model of “pay or accept.” The company’s social networks and platforms offer free use only if data is collected. To prevent information from being transferred, you must pay a subscription.
The paper’s sources say regulators intend to charge Meta* because the pay-or-opt-out model “risks providing a false alternative, with a financial barrier potentially forcing them to agree to having their personal information tracked.”
If Meta* is found liable, the company could face a fine of up to 10% of global turnover. And in case of recidivism, the amount of the penalty will increase to 20% of the turnover.
The company itself insists that the ad-free subscription complies with the guidelines of Europe’s highest court and the provisions of the Digital Markets Act.
Previously, Apple was accused of violating the Digital Markets Act. The apple manufacturer became the first company to which the EU applied the new legislation.
* Meta and its Facebook and Instagram members are recognized as extremist organizations whose activities are prohibited in the Russian Federation.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
