The European Union to Fine Meta over 'pay or consent'

The European Union plans to fine Facebook parent Meta for violating the bloc's groundbreaking digital regulations, according to a report, citing people with direct knowledge of the situation.

According to the source, authorities would express concerns about Meta's "pay or consent" strategy in preliminary results due out this week.

Meta debuted the no-ads subscription service for Facebook and Instagram in Europe last November, claiming that users who agree to be monitored receive a free service sponsored by advertising income or pay not to have their data shared.

According to the FT, authorities are anticipated to warn that Meta's decision risks providing consumers a false alternative, with the financial barrier requiring them to accept to have their personal data tracked for advertising reasons.

Meta and the European Commission did not immediately reply to Reuters' requests for comment.

The revelation comes after EU antitrust investigators charged Apple AAPL.O last week with violating the bloc's technology laws, a decision that may result in a big punishment for the iPhone manufacturer, which is also under investigation for increased app developer fees.

The Commission's complaint against Apple is the first under its groundbreaking Digital Markets Act (DMA), which attempts to limit the influence of 'Big Tech' corporations while providing a level playing field for smaller competitors.

DMA infractions may result in a punishment of up to 10% of the company's global annual revenue.