Why Meta is being fined whopping $1B by EU
What's the story
The European Union (EU) is planning to impose a massive fine on Meta, the parent company of Facebook and Instagram, as per the New York Post.
The publication says that the penalty could go as high as $1 billion or more.
The move comes as part of an ongoing investigation into Meta's alleged violations of strict EU antitrust rules.
The European Commission, which handles antitrust issues in the EU, is likely to announce its findings soon.
Regulatory review
Meta under scrutiny for non-compliance
The European Commission's review is likely to end this week with an announcement of possible enforcement actions against Meta.
The company could also be served a "cease-and-desist" notice detailing the changes required for compliance.
This investigation is part of the EU's larger push to enforce its Digital Markets Act (DMA) which sets stringent competition rules for major tech companies like Meta, Google parent Alphabet, Amazon, Apple, Booking.com, TikTok parent ByteDance and Microsoft.
Allegations
DMA violations and preliminary charges against Meta
The DMA permits fines of up to 10% of a company's global revenue for non-compliance, with penalties possibly doubling for repeat offenses.
Back in July 2023, the EU accused Meta of violating the DMA by introducing a "pay or consent" model for ads on its platforms.
The European Commission said this model "forces users to consent to the combination of their personal data and fails to provide them a less personalized but equivalent version of Meta's social networks."
Ongoing disputes
Meta's response and ongoing tensions with the EU
In a recent compliance report, Meta vented its frustration over "continued demands that go beyond what is written in the law," even as it tried to comply with the DMA.
This isn't the first time Meta has clashed with the EU over data privacy issues.
In 2023, it was slapped with a record fine of $1.3 billion for improperly transferring European users' data to the US.