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

Meta Seeks to End EU Investigation with Ad-Free 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 investigation into its pay-or-consent business model. The move comes after a €200 million fine in April and the threat of daily penalties up to 5% of Meta's worldwide revenue. According to the European Commission, Meta has agreed to make changes to its pay or consent business model in the EU, seeking to avoid further regulatory fines. The ad-light option, which would show users fewer personalized advertisements, is a significant step towards resolving the regulatory dispute. The European Commission will assess the changes before potentially closing the probe. This development follows an EU investigation into Meta's policy of requiring users either to consent to data tracking or pay for an ad-free service. The Financial Times reported on optimism that an agreement could be reached between the parties. The investigation into Meta's business model has been ongoing since the EU's Digital Markets Act (DMA) came into effect. The DMA aims to regulate the behavior of large tech companies, including Meta, and ensure fair competition in the digital market. According to Ars Technica, the European Commission announced on Tuesday that Meta had offered users an alternative choice of Facebook and Instagram services that would show them fewer personalized advertisements. Meta's proposal is seen as a significant concession by the company, which has faced criticism over its data tracking practices. The move is also a response to the EU's increasing scrutiny of big tech companies. "The EU's Digital Markets Act is a critical step towards ensuring fair competition in the digital market," said a spokesperson for the European Commission. "We will continue to work with Meta to ensure that the company complies with the DMA and provides users with a safe and transparent online experience." The ad-light option is not a new concept, as Meta has already offered a paid service called Meta Verified, which provides users with an ad-free experience. However, the new proposal would make this option available to all EU users, regardless of whether they pay for it or not. According to Meta, the ad-light option would be available on both Facebook and Instagram, and would be rolled out in the coming months. The outcome of the investigation is still uncertain, and it remains to be seen whether Meta's proposal will be enough to satisfy the European Commission. However, the company's willingness to make concessions is a positive step towards resolving the regulatory dispute. As one expert noted, "Meta's proposal is a significant step towards resolving the investigation, but it's not a guarantee that the probe will be closed. The European Commission will continue to assess the changes and ensure that Meta complies with the DMA." In a statement, Meta said that it was committed to providing users with a safe and transparent online experience. "We believe that our proposal is a significant step towards resolving the investigation and providing users with more control over their online experience," said a spokesperson for Meta. The company's proposal is a significant development in the ongoing regulatory dispute, and it remains to be seen how the European Commission will respond.