EU decides: Meta must not charge money for data protection - what does that mean?

On Monday, the European Commission announced a new finding. According to this, the company Meta is in breach of the Digital Markets Act (DMA). Specifically: Meta collects personal data from its users on its Facebook and Instagram platforms, but also via third parties. This data is analysed and passed on to advertising partners. The aim: when you scroll through Insta-Reels or the Facebook timeline, you are shown adverts for products or services that might interest you.

Money or data.

Money or data

As Meta is a so-called gatekeeper according to Chapter II, Art. 3 of the DMA, the company must adhere to certain requirements when it comes to the privacy of its users. Specifically: Article 5, paragraph 2 of the DMA. This states that gatekeepers must obtain the consent of their users in order to collect their personal data for advertising purposes. However, users who refuse this must still be given access to the service - without any loss of quality.

Even earlier, Meta was rapped on the knuckles for this. In response, Meta introduced a paid "opt-out" option. This means that you either agree to the data collection or you take out a paid subscription. In return, you get an ad-free version of the social platforms.

However, the EU Commission believes that this does not sufficiently comply with the article in question. Users must be able to make this decision free of charge.

What happens now?

Meta is therefore in breach of data protection laws, as the Commission has determined in cooperation with the data protection authorities. The company now has the opportunity to lodge an objection and respond to the allegations. To do so, Meta may inspect and review the Commission's investigation file. The EU Commission will examine any appeal and announce its final decision by 25 March 2025 at the latest.

If the current findings persist, the Commission may impose fines of up to 10 per cent of Metas' total global turnover (equivalent to USD 13.49 billion). It would even be 20 per cent for repeated violations. In the event of systematic non-compliance, Meta could even be forced to sell certain areas.

The question now arises as to how Meta will react to this temporary judgement. Only recently, the company was ordered to stop collecting data for Meta AI in Europe - whereupon Meta withdrew its AI offering from Europe completely, at least temporarily.

It is unlikely that Meta will also withdraw its platforms (Instagram, Facebook, but also WhatsApp) from Europe - nevertheless, advertising revenue is a key factor in the Californians' financing.