The European Commission is opening proceedings against Meta for a possible violation of the Digital Markets Act (DMA), in particular, the "pay or play" model. This was reported by the Financial Times.
By default, social media users agree to the collection of data by the company. The "pay or opt-in" model allows Instagram and Facebook users to pay to prevent the company from using their data.
Regulators reportedly consider the company's model risky for users because it gives them a false alternative that forces them to allow Meta to use their data for advertising.
Representatives of the company commented on the situation.
"The subscription, which allows for the removal of ads, complies with the rules of the highest court in Europe and the DMA. We look forward to further constructive dialog with the European Commission to conclude this investigation," the statement said.
As with the investigation into Apple that the European Commission launched last week, in case of a DMA violation, Meta could be fined 10% of its total global revenue and 20% in case of a repeat violation.
The European Commission has also accused Microsoft of illegally selling Teams as a bundle with Office365.