Meta is currently having difficulties with the European Commission after being warned that it could face daily fines starting from June 27 if it fails to make changes to its payment system or agrees not to meet compliance requirements. This warning was issued on Friday, following a €200 million (USD 234 million) fine for violating the Digital Markets Act (DMA). This law was introduced to limit the power of large tech platforms and prevent them from hindering competitors. According to Reuters, the Commission stated that the updated model Meta launched in November 2023 violated the DMA from that point until November 2024.
Meta's changes and challenges from the European Commission
This system allows users on Facebook and Instagram to choose between paying for an ad-free version or using a free version on the condition that they agree to be tracked for advertising purposes. Although the company has adjusted its model to minimize the use of personal data, managers still do not believe that these changes are sufficient.
A spokesperson for the Commission stated that the updates made so far are very minor and are being reviewed. "The Commission has not been able to confirm whether this is sufficient to comply with the key parameters in the non-compliance decision," the spokesperson said. They also stated that if Meta does not comply before next summer, daily fines could begin, totaling up to 5% of Meta's global daily revenue.
Meta protects its business model
Meta has defended its model and asserted that providing users with the choice between an ad-supported version and a paid version is standard business practice in Europe. In a statement, the company said: "A user choice between a paid ad-free service or a free ad-supported service remains a valid business model for any company in Europe, except for Meta."
However, the Commission has rebutted this claim. Officials assert that the DMA is being applied fairly to all major platforms operating in Europe, regardless of their origins. "We always enforce the law and will continue to enforce it fairly, without discrimination against any companies operating in the EU, fully complying with global rules," the spokesperson added.
Meta increases its AI team with talents from OpenAI and DeepMind
While dealing with regulatory pressure in Brussels, Meta has heavily invested in AI talent in the United States. The company just hired Trapit Bansal, a key figure in the AI world, who recently left OpenAI. Bansal joined Meta's AI super-intelligence team, which is researching advanced reasoning models that can compete with leading systems like OpenAI's o3 and DeepSeek's R1.
Bansal's LinkedIn confirms he left OpenAI in June. He had worked at the company since 2022 and helped launch enhanced learning efforts alongside Ilya Sutskever. Bansal is credited with being one of the key contributors to OpenAI's first reasoning model, known as o1. A spokesperson for OpenAI, Kayla Wood, confirmed Bansal's departure.
Meta's growing team
At Meta, Bansal joined a growing team that has attracted many big names like Alexandr Wang, former CEO of Scale AI, and may soon include Nat Friedman and Daniel Gross. The company is currently developing a next-generation reasoning model and building a strong team to achieve this goal.
Bansal is not alone. He joins recent hires at Meta, including Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai, all of whom recently left OpenAI. They will work alongside Jack Rae, who previously worked at Google DeepMind, and Johan Schalkwyk, who leads machine learning at the AI startup Sesame. This information was reported by The Wall Street Journal and Bloomberg.
Conclusions about Meta's future and legal challenges
Meta is facing major challenges from regulators in the EU while also strengthening its position in the AI field. These moves indicate that the company is not only trying to comply with regulations but also seeking a competitive edge in a rapidly growing industry. The competition between Meta and EU regulations will continue to unfold, affecting the company's image and operations in the near future.
With potential fines and changes in strategy, Meta needs to quickly adapt to maintain its leading position in the tech field while meeting the aspirations of consumers and regulatory organizations.
Source: https://tintucbitcoin.com/eu-phat-meta-500-000-usd-ngay/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news about the cryptocurrency market and not miss any important information!
