Following a significant regulatory ruling by the European Commission, Meta issued a warning on Wednesday that customers in Europe would have a “materially worse” experience. Recently, Meta implemented a “consent or pay” strategy that gives customers the option to either pay for a monthly membership or allow Meta to integrate data gathered from Instagram and Facebook.
The European Commission, the executive branch of the EU, declared last week that it had fined Meta €200 million (£171 million) for violating the Digital Markets Act (DMA). We expect we will need to make some modifications to our model based on feedback from the EC in connection with the DMA,” Meta stated in its quarterly results statement.
They “could result in a materially worse user experience for European users and a significant impact” on Meta’s European operations and revenue, the company claimed. According to the corporation, such effects may begin as early as the third quarter of this year and may persist while it challenges the ruling.
Amid a governmental crackdown, Meta may be attempting to deliberately utilise European consumers as “vocal cheerleaders” for its goods, according to Eric Seufert, analyst at Mobile Dev Memo.
“What they finally want to do is turn consumers against this regulation system which will demonstrably degrade the product offerings that are available to EU residents,” Seufert said in a phone interview with the BBC following the news.
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