European Union Accuses Facebook Owner Meta of Breaking Digital Rules with Paid Ad-free Option

FILE PHOTO: A  security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo
FILE PHOTO: A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo
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European Union Accuses Facebook Owner Meta of Breaking Digital Rules with Paid Ad-free Option

FILE PHOTO: A  security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo
FILE PHOTO: A security guard stands watch by the Meta sign outside the headquarters of Facebook parent company Meta Platforms Inc in Mountain View, California, US November 9, 2022. REUTERS/Peter DaSilva/File Photo

European Union regulators accused social media company Meta Platforms on Monday of breaching the bloc's new digital competition rulebook by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.
Meta has been giving European users the option since November of paying for ad-free versions of Facebook and Instagram as a way to comply with the continent’s strict data privacy rules, The Associated Press said.
Desktop browser users can pay about 10 euros ($10.50) a month while iOS or Android users will pay roughly 13 euros to avoid being targeted by ads based on their personal data.
The US tech giant rolled out the subscription option after the European Union’s top court ruled that under strict EU data privacy rules, Meta must first get consent before showing ads to users.
The European Commission, the EU's executive arm, said preliminary findings of its investigation show that Meta's “pay or consent” advertising model was in breach of the 27-nation bloc’s Digital Markets Act.
The commission said Meta's model doesn't allow users to exercise their right to “freely consent” to allowing their personal data to be used to target them with online ads.
The commission had opened its investigation shortly after the rulebook, also known as the DMA, took effect in March. It's a sweeping set of regulations aimed at preventing tech “gatekeepers” from cornering digital markets under threat of heavy financial penalties.
“The DMA is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access,” European Commissioner Thierry Breton, who oversees the bloc's digital policy, said in a statement.
Meta now has a chance to respond to the commission, which must wrap up its investigation by March 2025. The company could face fines worth 10% of its annual global revenues, which could run into the billions of euros.
“Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA," Meta said in a statement. "We look forward to further constructive dialogue with the European Commission to bring this investigation to a close.”
Under the Digital Markets Act, Meta is classed as one of seven online gatekeepers while Facebook, Instagram and its ad business are among about two dozen “core platform services” that need the highest level of scrutiny.



Intuitive Surgical Results Beat on Growing Demand for Surgical Robots

Representation photo: Employees work at the office of humanoid robots developer Ex-Robots in Dalian, Liaoning province, China June 6, 2024. REUTERS/Florence Lo
Representation photo: Employees work at the office of humanoid robots developer Ex-Robots in Dalian, Liaoning province, China June 6, 2024. REUTERS/Florence Lo
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Intuitive Surgical Results Beat on Growing Demand for Surgical Robots

Representation photo: Employees work at the office of humanoid robots developer Ex-Robots in Dalian, Liaoning province, China June 6, 2024. REUTERS/Florence Lo
Representation photo: Employees work at the office of humanoid robots developer Ex-Robots in Dalian, Liaoning province, China June 6, 2024. REUTERS/Florence Lo

Intuitive Surgical on Thursday beat estimates for second-quarter profit and revenue on growing demand for its surgical robots used in minimally invasive procedures, sending its shares up 6.7% after the bell.
Investor expectations around medical device makers have grown lately on hopes of elevated demand for surgical procedures as people, especially older adults, opt for medical procedures deferred during the pandemic, Reuters said.
On an adjusted basis, Intuitive earned $1.78 per share for the quarter ended June 30, beating analysts' estimates of $1.54 per share, according to LSEG data.
The company reported quarterly revenue of $2.01 billion, compared with analysts' estimates of $1.97 billion.
The rise in revenue was driven in part by growth in the procedure volume from the company's surgical robots called da Vinci. Worldwide da Vinci procedure volumes rose about 17%, from a year ago, the company said.
Industry bellwether Johnson & Johnson on Wednesday posted a 2.2% rise in second quarter sales at its medical technology business, but fell short of analysts' estimates.
Larger peer Abbott Laboratories also raised its annual profit forecast, helped by double-digit growth in sales of its glucose monitors and strong demand for heart devices.