Comment by phtrivier

5 days ago

> Apple faces a €500 million fine for breaching the regulation’s rules for app stores, while Meta drew a penalty of €200 million for its "pay or consent" advertising model,

> The procedural fines fall short of the two giant penalties issued by the EU executive under its antitrust laws last year: €1.8 billion to Apple for abusing its dominant position while distributing music streaming apps, and €797 million to Meta for pushing its classified ads service on social media users.

Really honest questions: are those fines actually paid, in practice ? Is there a way for a citizen to know ? (As in, do they appear in the public budget of the UE ?) Or are they somehow deducted from subsidies, added to taxes, etc... ?

I know who collects taxes in France ("Le Tresor Public"). I don't know of a EU version of a treasury. Is it collected by one of the member states (Ireland, I would guess ?)

> Fines imposed on undertakings found in breach of EU antitrust rules are paid into the general EU budget. This money is not earmarked for particular expenses, but Member States' contributions to the EU budget for the following year are reduced accordingly. The fines therefore help to finance the EU and reduce the burden for taxpayers.

This quote is re: anti-trust, but likely generalizes.

https://competition-policy.ec.europa.eu/index/fines_en#:~:te...

> "pay or consent" advertising model,

Wait, so the EU has made it illegal to sell a paid service while also offering an alternative where the user pays via seeing ads?

  • It's not the ads you are consenting to, its the personal data collection and targeting.

    You could have non-personalized, or contextual ads. But those are much less effective.

    • >You could have non-personalized, or contextual ads. But those are much less effective.

      This is always a bit frustrating to me, in that, if someone doesn't like personal data collection, they likely have enough blocked that the attempts at targeted advertisements are likely to be very ineffective. And even in spaces where there is little personal data available, online advertising still seems to desperately cling to targeting rather than context.

      I remember being struck by the contrast between the printed Times Literary Supplement, with advertisements for new book releases, conferences, cultural events, and so on, which all seem quite relevant to the audience, are often enjoyable and informative, and have directly motivated me to buy things, and the automated advertisements that were added to their podcast, for things like... a football-themed advertisement for a car dealership vaguely located near some rough geolocation of my IP address.

    • > You could have non-personalized, or contextual ads. But those are much less effective.

      This is a lie that has been perpetuated for a very long time.

      1. There's no definite proof they are much less effective

      2. Even if they are less effective, is it a bad trade-off when weighed against life-long pervasive and invasive tracking?

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  • No. They just made it illegal for Meta specifically to do it, and they’re reserving judgment for anyone else on their hit list covered by the DMA. The DMA is not neutral laws on neutral principles despite the PR and the extra layers of indirection, it targets American and Chinese companies specifically because that’s what it was designed to do.

    • Not Meta specifically, although Meta as a monopoly on being apple to infrige this rule. (A long time ago, in a capitalism far, far way, America was against monopolies and cartels. Those days will come back.)

      > The DMA is not neutral laws on neutral principles

      What do you mean "neutral law on neutral principles" ? Does that exist ?

      I can agree on some version of "not a neutral law" in that it is "objectively" targeted: the law makes a difference between smaller actors and bigger ones ("gatekeepers") (and it's not clear to me if the criterias (size, audience, revenues, etc...) are set in store, or arbitrary [1]).

      It happens that they're all from the US except TikTok's ByteDance and Booking.com. It was probably _designed_ for that.

      But I suspect the case here "Meta is offering you to pay, so that they don't have to respect your rights to privacy". I suspect it would be illegal for even the smaller data collectors. But IANAL.

      However, the "neutral principles" don't make sense. All laws are principled, except the laws of physics.

      In this case, yes, the "principle" is that personal data is something to be treated with care. As often, you can state that something is a "principle" when someone can have the opposite version. So the "opposite" version of this is that personal data is a commodity that can be sold at will.

      None of those version is neutrally "true" or "false".

      However, we just happen, in the EU, to have pretty strong memory of people doing bad things with extensive databases, so we have different views on the matter.

      The shame is that it never was directly settled in a democratic debate - it's entirely the work of the legislative bodies of the EU, which, though elected and representative, are not exactly well know of famous. Maybe the debate is too technical to be popular.

      [1] https://ec.europa.eu/commission/presscorner/detail/en/qanda_...

      [2] https://digital-markets-act.ec.europa.eu/gatekeepers_en#book...

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