The European Union is poised to charge Meta, the parent company of Facebook and Instagram, with violating the bloc's landmark Digital Markets Act (DMA).

This move comes just a week after the EU pressed similar charges against Apple, signalling a robust enforcement of new digital regulations aimed at curbing the power of tech giants and fostering a more competitive digital landscape.

According to a report originally published by the Financial Times citing sources close to the matter, the European Commission, the EU's executive body, will issue preliminary findings this week expressing concerns over Meta's 'pay or consent' model. The model deployed across Meta’s platform offers users the choice between using social networks for free whilst consenting to data collection, or paying a fee to avoid data sharing.

EU regulators are expected to argue that this approach presents consumers with a false choice, as the financial barrier may effectively coerce users into consenting to personal data tracking for advertising purposes. A source familiar with the EU's stance suggested that consumers should be provided with "an equivalent offer".

The DMA, which came into effect in March, requires tech giants to obtain explicit user consent before combining or cross-using personal data across different core platform services. The Commission launched compliance investigations against Meta and other tech behemoths when the act took effect.

If found in breach of the DMA, Meta could face severe penalties of up to 10 per cent of its global turnover, with potential fines of up to 20 per cent for repeat offences. The EU has one year from the start of its official investigation in March to finalise its preliminary findings.

Margrethe Vestager, the EU's executive vice-president for digital policy, recently expressed surprise that some of the world's largest companies "do not take compliance as a badge of honour". She emphasised that the DMA's requirements for a fair, open, and contestable marketplace are "not an excessive ask" for companies of such scale and value.

The impending charges against Meta follow closely on the heels of the EU's accusations against Apple regarding restrictions on its App Store. These rapid-fire actions demonstrate Brussels' determination to swiftly address alleged anti-competitive behaviour in the tech sector.

An antitrust lawyer cited by the report noted that "Big Tech is a priority for Brussels. There is an acknowledgment that the enforcement of traditional competition law has been slow and somewhat ineffective."

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