"Meta Offers EU Users Ad-Free Choice to End Investigation"

Meta Seeks to End EU Investigation with Ad-Light Option for Users Meta, the parent company of Facebook and Instagram, has proposed an ad-light option for European Union users in a bid to resolve an ongoing investigation into its pay-or-consent business model. The move comes after the company faced a €200 million fine in April and the threat of daily penalties up to 5% of its worldwide revenue. According to the European Commission, Meta has agreed to make changes to its business model, offering users an alternative choice of services that would show them fewer personalized advertisements. The ad-light option is part of a broader effort by Meta to comply with the EU's Digital Markets Act, which aims to regulate the behavior of large tech companies. The investigation into Meta's business model began in 2022, when the European Commission raised concerns about the company's requirement for users to either consent to data tracking or pay for an ad-free service. The commission had threatened to impose daily penalties of up to 5% of Meta's worldwide revenue, which could have resulted in significant financial losses for the company. Meta's proposal to offer an ad-light option for EU users is seen as a significant step towards resolving the regulatory dispute. According to the Financial Times, there is optimism that an agreement can be reached between Meta and the European Commission. "This is a positive development, and we are encouraged by Meta's willingness to make changes to its business model," said a spokesperson for the European Commission. The ad-light option will allow EU users to choose between a service with fewer personalized advertisements and a service with more targeted ads. According to Meta, the ad-light option will be available on both Facebook and Instagram platforms. The company has not specified when the ad-light option will be rolled out, but it is expected to be available in the coming months. The proposed changes to Meta's business model are part of a broader effort by the company to comply with EU regulations. In a statement, a Meta spokesperson said, "We are committed to complying with EU regulations and providing users with choices about how their data is used." The European Commission will assess the changes proposed by Meta before potentially closing the probe. If the commission is satisfied with the changes, it is likely to close the investigation and avoid imposing further fines on the company. However, if the commission is not satisfied, it may continue to investigate Meta's business practices and impose further penalties. In related news, the EU's digital rulebook has drawn criticism from US authorities, who argue that it is overly restrictive and could harm the competitiveness of US tech companies. However, the European Commission has defended its regulations, saying that they are necessary to protect the rights of EU citizens and promote fair competition in the digital market. As the investigation into Meta's business model continues, the company's proposal to offer an ad-light option for EU users is seen as a significant step towards resolving the regulatory dispute. The outcome of the investigation will have significant implications for the digital market and the future of online advertising.