Summary
Tech company Meta has been warned by the European Commission that its new user data model doesn't meet regulations, and has been fined €200m (£171m). This may modify and worsen the experience for its European users, with potential effects on earnings from Europe.
Key Facts
- The European Commission has fined Meta €200m (£171m) due to a breach of the Digital Markets Act.
- Meta brought in a new system in which users had to either pay a subscription or allow Meta to combine their data from Facebook and Instagram. The European Commission has declared this system as non-compliant.
- Meta may have to change its business model as a result, potentially harming the user experience for individuals in Europe and impacting its business and revenue.
- These changes could come into force as soon as the third quarter of this year.
- The European Commission argues that Meta's "consent or pay" system doesn't give users free choice over how their data is used.
- Meta was also given 60 days to agree to the recent decision set by the Digital Markets Act, or it could face additional fines.
- Despite the fine, Meta's recent quarterly earnings exceeded Wall Street predictions.
- Meta owns social media sites such as Facebook, Instagram and messaging service WhatsApp.
