Meta accused of failing to comply with EU antitrust rules

[Pelican Press 0]

Meta accused of failing to comply with EU antitrust rules

Investors are staying on the sidelines amid a broad selloff in tech stocks this year. Shares of

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parent Meta are down more than 30% this year amid a troubling macro environment and weaker-than-expected results.

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parent company Meta was on Monday accused by EU regulators of failing to comply with the bloc’s landmark antitrust rules over its recently introduced ad-supported social networking service.

The Commission labelled the ad-supported subscription option a “pay or consent” model — which means users have to either pay to use Meta’s platforms ad-free, or consent to their data being processed for personalized advertising. The service was introduced for

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and

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in Europe last year.

“In the Commission’s preliminary view, this binary choice forces users to consent to the combination of their personal data and fails to provide them a less personalised but equivalent version of Meta’s social networks,” regulators said in a statement Monday.

CNBC has reached out to Meta for comment. The company separately told Reuters in a statement that its ad-supported subscription model “follows the direction of the highest court in Europe and complies with the DMA.”

Meta introduced the new model in response to a ruling from the ********* Court of Justice, the EU’s top court, last year that a company may offer an “alternative” version of its service that does not rely on data collection for ads. Meta has previously pointed to this ruling as a reason for introducing the subscription offer.

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