EC accuses Meta of offering free services in exchange for data

The European Commission (EC) has accused US internet company Meta Platforms of breaching new rules that apply to large internet platforms in the European Union. The firm, which operates networks such as Facebook and Instagram, is forcing users to give up their private data in exchange for access to free services against the rules, the EU executive said today.

The risk is high

Meta responded by saying that the offer reflects the recommendations of the EU’s highest court and does not violate EU rules. If it does not comply with Brussels’ objections, it could face a very large fine, in the extreme case the equivalent of up to ten percent of its worldwide annual turnover. This amounted to almost $135 billion last year. The maximum fine would thus exceed $13 billion.

Since last autumn, the aforementioned networks have offered users in Europe a choice based on only two options – either they will have paid services or they will give Meta access to their data, which will allow it to finance the offered services from advertising revenues.

In conflict since March 2024

“We want to give citizens the opportunity to have control over their own data and to choose less personalised advertising,” Margrethe Vestager, the Commission’s Vice-President responsible for market rules, said today.

According to the Commission’s preliminary investigation, Meta Platforms is in breach of the Digital Markets Act (DMA), in force since March, by forcing users to choose between two options and not offering other alternatives. It also does not allow people to decide for themselves which data to give the firm access to, the commission said.

Source: Czech Press Office

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Forbes: CE Industries Owner Strnad to Invest Part of His Companies into Investment Fund

Jaroslav Strnad, owner of CE Industries and Helicopter Alliance...

Coinomi Review: Is This Crypto Wallet Safe or Falling Behind?

Coinomi is one of the longest-running cryptocurrency wallets on...

crypto4me: regulated crypto service brings easy cryptocurrency purchasing within European license

crypto4me – The European cryptocurrency market has undergone significant...

What Is Volatility and Why It Drives Returns

Volatility is one of the most frequently discussed concepts...

What Is a Crypto Airdrop: How Free Token Distribution Works and How to Profit From It

Crypto airdrops have become one of the most talked-about...

Portfolio Diversification: How to Reduce Risk

Portfolio diversification is often presented as a basic rule...
spot_img

spot_imgspot_img