Meta, the parent company of Facebook and Instagram, is once again at the center of a regulatory storm in Europe. The European Commission is reportedly preparing to impose daily fines of up to $22.5 million on the US tech giant over its controversial “pay-or-consent” model, a subscription-based framework that critics argue violates the spirit and letter of the European Union’s Digital Markets Act (DMA). This escalating dispute underscores the deepening divide between European regulators and American tech firms over the future of digital privacy, user consent, and market fairness.

The controversy stems from a policy Meta introduced across the EU in November 2023. Under this model, users of Facebook and Instagram were given two choices: continue using the platforms for free but consent to the use of their personal data for targeted advertising, or pay a monthly fee to opt out of data tracking and receive an ad-free experience.

At launch, the mobile subscription fee was set at €12.99 per month-over $15 in US dollars. Meta framed this as a legitimate business decision aimed at aligning with European privacy requirements, especially the General Data Protection Regulation (GDPR). Yet, EU regulators took a sharply different view, arguing that the model effectively coerces users into relinquishing their personal data.

The European Commission has maintained that the pay-or-consent framework violates key provisions of the Digital Markets Act, a sweeping law enacted in 2023 to rein in Big Tech and enhance digital competition. The DMA specifically requires designated “gatekeepers” – large tech platforms with dominant market........

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