EU Intensifies Scrutiny on Meta's Compliance with Antitrust Order

Meta Platforms may soon face daily financial penalties if its proposed alterations to the pay-or-consent model are deemed non-compliant with an antitrust guideline mandated by EU regulators. This warning from the European Commission emerged shortly after a hefty 200-million-euro fine was imposed on Meta for previous violations of the Digital Markets Act (DMA), which strives to mitigate Big Tech's commanding influence.

The punitive measures illustrate the Commission's ongoing dedication to fostering equitable competition for smaller entities, despite U.S. objections over the perceived targeting of American firms. Under the DMA, non-compliance can result in daily fines accounting for up to 5% of a company's average daily global revenue.

Notably, the watchdog scrutinizes Meta's adjustments to its model, which, until November 2024, was found to breach the DMA by leveraging user data for targeted advertising. Meanwhile, Meta asserts its model provides consumers with a legitimate subscription choice, contrary to claims of discriminatory treatment. The Commission reaffirmed its impartial enforcement of EU laws across all major digital enterprises.

(With inputs from agencies.)