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EU Commission fines Meta $200 million for breaching DMA, far less than stipulated by the act, says they are examining the new model
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European Commission fined Meta €200 million for breaching the Digital Markets Act (DMA).
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The Commission said it found Meta’s “consent or pay” model to be not compliant with DMA.
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The fine relates to the time (March-November 2024) when Meta offered “consent or pay” model to its European users.
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The Commission is currently assessing whether Meta’s new model-introduced in November 2024 is compliant with the DMA.
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The Commission also excluded Facebook Messenger from the designation under the DMA.
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The DMA gives regulators the right to impose fines of up to 10% of the firm’s global turnover.
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Joel Kaplan, Meta’s chief global affairs officer said they would likely appeal the decision, adding that the Commission is forcing them to change their business model, a move that could amounts to a “multibillion-dollar tariff”.
“The commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service,” said
Assessment
The fine imposed on Meta is far much lower than that stipulated by the DMA. Perhaps this is an attempt to avoid provoking Trump as trade negotiations continue. However, based on the comments from the EU Commissioner, it looks like the case is not over yet. Similarly, comments from Kaplan indicates that the EU requirements could have significant impact on the business if a cease-and-desist order is imposed on the new model.