Meta clashed with the European Commission (EU) over its alleged violation of EU digital laws with its subscription-based, ad-free social network models. 

The company first introduced this model to comply with the EU's stringent data privacy regulations, particularly under the Digital Markets Act (DMA). Critics argue that this model effectively forces users to accept data collection practices if they opt not to pay for the ad-free service. 

Reports from The Guardian showed that the commission had raised objections to Meta's implementation of a "pay or consent" approach. This approach requires users to either pay a monthly fee for an ad-free experience or consent to their personal data being used for targeted advertising.

The commission's preliminary findings suggest that Meta's approach fails to offer users a genuine alternative that minimizes data collection while still providing a service comparable to the ad-supported versions of Facebook and Instagram.

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Meta on its Ad-Free Data Privacy Model

In response to the accusations, the company assured that the subscriptions are an alternative to joining advertising efforts of businesses using Meta apps, a common practice in various industries. 

A spokesperson emphasized that the ad-free subscription option was designed to align with regulatory requirements, including those set forth by the DMA. 

Meta promises to engage constructively with the commission as the investigation progresses.

The European Commission is expected to conclude its investigation by March next year. If Meta is found to have breached the DMA, it could face a fine of up to 10% of its global turnover, amounting to approximately $13.5 billion. 

Apple was the first violator of the EU's DMA rules, and according to VCPost, the company is currently facing a fine of up to $38 billion.

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