The European Commission on Monday declared that Meta Platforms' newly introduced ‘pay or consent' advertising model fails to comply with the Digital Markets Act, compounding problems for the social media giant already under the scanner of regulators over privacy concerns.
European Commission says ‘pay or consent' model does not comply with Digital Markets Act
Facebook and Instagram parent Meta has flouted Europe's tough digital competition rules by forcing users to “pay or consent” to sharing personal data, the European Commission said Monday, an infraction that could potentially cost the company billions of dollars—just a week after the powerful regulator targeted iPhone giant Apple for stifling competition.
LONDON (AP) — European Union regulators accused social media company Meta Platforms on Monday of breaching the bloc's new digital competition rulebook by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.
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Preliminary findings by the European Commission investigating a controversial binary choice Meta has forced on regional users of its social neworks, Facebook and Instagram, since last fall does not comply with the bloc's Digital Markets Act (DMA).
The EU accused Facebook owner Meta on Monday of breaching the bloc's digital rules, paving the way for potential fines worth billions of euros.
Meta accused of breaching EU antitrust rules over ad-supported subscription service
Meta Platforms was charged by EU antitrust regulators on Monday for failing to comply with landmark tech rules as they took aim at its newly introduced pay or consent advertising model.
Meta's suite of social networking apps offers a compelling entertainment and communication platform for users and attractive advertising opportunities for marketers. Meta has shown resilience against regulatory and competitive pressures, and strong financial performance on the back of the company's incredible user network should continue. While Meta's valuation may appear expensive, we think the price is justified by the company's growth and profitability outlook.
The European Union is set to charge Facebook parent Meta with breaking the bloc's landmark digital rules, the Financial Times reported on Monday.
In the past year, both Meta (Nasdaq: META) and Alphabet (Nasdaq: GOOGL) announced dividends.