Facebook warns European users of lower quality service
Meta warned European users would have a "materially worse" experience following a significant regulatory ruling by the European Commission.
Quick overview
- Meta warned that European users may experience a 'materially worse' service following a €200 million fine from the European Commission.
- The company has introduced a 'consent or pay' model, allowing users to either pay for a subscription or consent to data integration from Instagram and Facebook.
- Meta anticipates that changes to its operations may negatively impact user experience and revenue in Europe, starting as early as the third quarter of this year.
- The European Commission stated that users cannot freely consent to data use under Meta's current model, and the company has sixty days to comply with the ruling.
Meta warned European users would have a “materially worse” experience following a significant regulatory ruling by the European Commission.
Meta implemented a “consent or pay” strategy that gives the option to either pay for a monthly membership or allow Meta to integrate data gathered from Instagram and Facebook.
The European Commission, the executive branch of the EU, declared last week that it had fined Meta €200 million for violating the Digital Markets Act (DMA).
“We expect we will need to make some modifications to our model based on feedback from the EC in connection with the DMA,” Meta stated in its quarterly results statement.
The company stated it “could result in a materially worse user experience for European users and a significant impact” on Meta’s European operations and revenue.
According to the corporation, those effects might begin as early as this year’s third quarter and continue to exist while it challenges the ruling.
The social media network, Instagram, WhatsApp, and the photo-sharing app are all part of Meta, which was formerly known as Facebook. According to the Commission, users cannot freely consent to their data use under Meta’s consent-or-pay model.
Another option that Meta introduced last year, which the business claims utilizes less personal data to deliver adverts, is presently being evaluated by the organization.
Meta has sixty days to abide by the DMA’s recent ruling or face additional penalties.
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