Brussels goes after Meta for ‘payment controversy’ in latest scandal following Apple showdown

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In this week’s newsletter, the Editor of the Financial Times, Roula Khalaf, handpicks her favorite stories for your reading pleasure. Get ready to delve into the latest developments in the tech world as the EU gears up to charge Facebook’s parent company, Meta, for violating the bloc’s digital regulations.

Let’s take a closer look at what’s been brewing:

• New Regulations: The European Commission, wielding the powers granted by the Digital Markets Act, is cracking down on tech giants to promote consumer choice and pave the way for European startups to thrive. This legislation, in effect since March, mandates compliance from major players like Meta and Apple.
• Preliminary Findings: Concerns are raised about Meta’s "pay or consent" model, where users can use Facebook and Instagram for free in exchange for data collection consent. Regulators fear this may create a false dichotomy for consumers, pushing them to agree to data tracking due to financial barriers.
• Consent Requirement: Under the new rules, tech giants must seek user consent before combining personal data across different platform services. The aim is to ensure consumers have equivalent options and don’t feel nudged into sharing their personal information unknowingly.
• Penalties: Meta could face penalties of up to 10% of its global turnover, escalating to 20% for repeated offenses. The EU’s strict stance underlines the importance of maintaining a fair and competitive marketplace in the digital sphere.
• Enforcement Priorities: Margrethe Vestager, the EU’s executive vice-president, emphasizes the need for compliance from tech giants. The Digital Markets Act is viewed as a necessary step to level the playing field and encourage innovation without stifling competition.
• Swift Actions: Following the recent case against Apple, the EU’s move against Meta showcases a commitment to tackling anti-competitive practices in the tech industry promptly. Brussels aims to establish a firm stance against monopolistic behavior to foster a more dynamic marketplace.

In conclusion, the EU’s actions against Meta and Apple highlight the importance of upholding fair competition and safeguarding consumer interests in the digital age. As regulatory bodies worldwide sharpen their focus on Big Tech, it’s crucial for industry giants to prioritize compliance and transparency to ensure a level playing field for all players. Stay tuned for more updates as the tech landscape continues to evolve.