On July 1st, the European Commission (hereinafter the "Commission") issued preliminary conclusions on Meta's pay or consent advertising model. In its findings the Commission determines that this binary choice forces users to consent to the combination of their personal data and fails to provide them with a less personalised but equivalent version of Meta's social networks.
The Commission argues that Meta's “pay or consent” model does not meet the requirements set out in Art. 5(2) of the Digital Markets Act (“DMA”), which states that 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 The Commission finally concludes that Meta's model:
i. Does not allow users to opt for a service that uses less of their personal data;
ii. Does not allow users to exercise their right to freely consent to the combination of their personal data.
Next steps
By sending these preliminary findings, the Commission informs Meta that the company infringes the DMA. Meta now has the possibility to respond to the Commission’s preliminary findings. If the Commission's views are finally confirmed, the Commission will adopt a decision declaring that Meta's model does not comply with Art 5(2) of the DMA.