According to British media reports on Monday, the European Union is about to accuse Meta Platforms (META.US), the parent company of Facebook, of violating the EU's landmark digital regulatory rules. In March this year, the European Commission launched a violation investigation against Apple (AAPL.US), Google (GOOGL.US), and Facebook parent company Meta Platforms(META.US), on the grounds that these tech giants may have violated the Digital Markets Act (DMA).

In the case of Meta, the latest violation investigation is related to the company's 'pay or agree' model. According to three insiders familiar with the matter cited by British media, the regulatory agency will express concern about Meta's 'pay or agree' model in the preliminary investigation results to be released this week.

Last year, Meta launched an ad-free paid subscription service for its social media platforms Facebook and Instagram in Europe to comply with ever-changing European regulatory rules, allowing users to opt-out of data tracking technology used by the company for advertising purposes. Meanwhile, users who agree to be tracked will receive a free service.

According to media reports, the EU regulatory agency is expected to say that the choice provided by Meta's model may give consumers a false and misleading choice, as financial obstacles may force them to agree to have their personal data used for advertising purposes.

The sources cited by the media revealed that if found to have violated the law, Meta could face a fine of up to 10% of its global revenue, and if it reoffends, it could face a fine of up to 20%.

Last week, the EU antitrust regulator filed a similar lawsuit against Apple (AAPL.US). The European Commission (EC) stated that the rules of the Apple App Store violate the European Union's Digital Markets Act (DMA), because these rules prevent app developers from directing consumers to other alternative channels to access products and related content.