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EU Threatens Penalty Payments Over Meta’s Limited Pay-Or-Consent Model Changes

EU regulators warn that insufficient changes to Meta’s pay-or-consent model risk triggering periodic penalty payments

FILE PHOTO: A Meta logo is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. REUTERS/Annegret Hilse/File Photo/File Photo
EU flag and Meta logo are seen in this illustration taken, May 22, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE - The Meta logo is seen at the Vivatech show in Paris, France, June 14, 2023.

Overview

  • The European Commission reported that Meta’s adjustments to its pay-or-consent framework are minimal and their compliance with antitrust orders remains unverified.
  • Officials cautioned that continuous non-compliance could activate periodic penalty payments starting June 27, 2025, under the EU’s non-compliance decision.
  • Meta accused EU antitrust authorities of shifting requirements against its business model despite engaging in constructive discussions to implement significant revisions.
  • A Meta spokesperson asserted that the suite of privacy and payment choices offered to EU users not only meets but exceeds regulatory requirements.
  • The case under the EU’s Digital Markets Act represents a crucial enforcement test that could set precedents for other major tech platforms.