Novelist Christopher Farnsworth has filed a class-action lawsuit (PDF) against Meta, accusing the company of using his and other authors' pirated books to train its Llama AI model. Farnsworth seeks damages and an order to stop the alleged copyright infringement, joining a growing group of creators suing tech companies over unauthorized AI training. Reuters reports: Farnsworth said in the lawsuit on Tuesday that Meta fed Llama, which powers its AI chatbots, thousands of pirated books to teach it how to respond to human prompts. Other authors including Ta-Nehisi Coates, former Arkansas governor Mike Huckabee and comedian Sarah Silverman have brought similar class-action claims against Meta in the same court over its alleged use of their books in AI training. [...] Several groups of copyright owners including writers, visual artists and music publishers have sued major tech companies over the unauthorized use of their work to train generative AI systems. The companies have argued that their AI training is protected by the copyright doctrine of fair use and that the lawsuits threaten the burgeoning AI industry.

At its Connect event earlier this week, Meta said it'll be adding conversational voices to its AI chatbot from celebrities like Awkwafina, John Cena, Dame Judi Dench, Keegan-Michael Key and Kristen Bell. The Verge reports: These celebrity voices will only be available to US users of Meta's apps to start. And if you prefer a voice that is a little more mundane, you can also pick from non-celeb voices with names like "Aspen," "Atlas," or "Clover." [...] Meta is explicitly announcing celebrity partnerships, which likely involve payment or some other deal. Meta hasn't shared those details, but the company has paid each celebrity "millions of dollars" for their voices, according to The Wall Street Journal. And in negotiations, some of the people reportedly wanted to limit what their voices could say and to make sure they weren't liable if Meta AI was used. [...]

Meta's AI updates aren't just about voice conversations. Its chatbot will also now "answer questions about your photos" when you upload images. Send a picture of a cake, ask how to make it, and it'll grab you a recipe that hopefully does just that. And if you want something "added, changed, or removed" from an image, Meta says you can describe anything from "changing your outfit to replacing the background with a rainbow," and it'll carry out that request.

Meta has been fined $101.5 million by the Irish Data Protection Commission (DPC) for storing over half a billion user passwords in plain text for years, with some engineers having access to this data for over a decade. The issue, discovered in 2019, predominantly affected non-US users, especially those using Facebook Lite. AppleInsider reports: Meta Ireland was found guilty of infringing four parts of GDPR, including how it "failed to notify the DPC of a personal data breach concerning storage of user passwords in plain text." Meta Ireland did report the failure, but only some months after it was discovered. "It is widely accepted that user passwords should not be stored in plaintext, considering the risks of abuse that arise from persons accessing such data," said Graham Doyle, Deputy Commissioner at the DPC, in a statement about the fine. "It must be borne in mind, that the passwords the subject of consideration in this case, are particularly sensitive, as they would enable access to users' social media accounts."

Other than the fine and an official reprimand, the full extent of the DPC's ruling is yet to be released publicly. The details published so far do not reveal whether the passwords included any of US users as well as ones in Ireland or across the rest of the European Union. It's most likely that the issue concerns only non-US users, however. That's because in 2019, Facebook told CNN that the majority of the plain text passwords were for a service called Facebook Lite, which it described as being a cut-down service for areas of the world with slower connectivity.

An anonymous reader quotes a report from TechCrunch: Meta CEO Mark Zuckerberg announced updates to the company's Ray-Ban Meta smart glasses at Meta Connect 2024 on Wednesday. [...] Meta says its smart glasses will soon have real-time AI video capabilities, meaning you can ask the Ray Ban Meta glasses questions about what you're seeing in front of you, and Meta AI will verbally answer you in real time. Currently, the Ray-Ban Meta glasses can only take a picture and describe that to you or answer questions about it, but the video upgrade should make the experience more natural, in theory at least. These multimodal features are slated to come later this year. In a demo, users could ask Ray-Ban Meta questions about a meal they were cooking, or city scenes taking place in front of them. The real-time video capabilities mean that Meta's AI should be able to process live action and respond in an audible way. This is easier said than done, however, and we'll have to see how fast and seamless the feature is in practice. We've seen demonstrations of these real-time AI video capabilities from Google and OpenAI, but Meta would be the first to launch such features in a consumer product.

Zuckerberg also announced live language translation for Ray-Ban Meta. English speaking users can talk to someone speaking French, Italian, or Spanish, and their Ray-Ban Meta glasses should be able to translate what the other person is saying into their language of choice. Meta says this feature is coming later this year and will include more language later on. The Ray-Ban Meta glasses are getting reminders, which will allow people to ask Meta AI to remind them about things they look at through the smart glasses. In a demo, a user asked their Ray-Ban Meta glasses to remember a jacket they were looking at, so they could share the image with a friend later on. Meta announced that integrations with Amazon Music, Audible, and iHeart are coming to its smart glasses. This should make it easier for people to listen to music on their streaming service of choice using the glasses' built-in speakers. The Ray-Ban Meta glasses will also gain the ability to scan QR codes or phone numbers from the glasses. Users can ask the glasses to scan something, and the QR code will immediately open on the person's phone with no further action required. Zuckerberg also unveiled the company's prototype AR glasses codenamed Orion, which feature a 70-degree field of view, Micro LED projectors, and silicon carbide lenses that beam graphics directly into the wearer's eyes.

Amazon, Meta, and Tesla were named by the International Trade Union Confederation (ITUC) as some of the worst corporate underminers of democracy . These companies were accused of union busting, monopolizing media and technology, violating human rights, contributing to climate change, and fostering political movements that threaten democratic institutions. The full list of "corporate underminers of democracy for 2024" is Amazon, Blackstone Group, ExxonMobil, Glencore, Meta, Tesla and the Vanguard Group. The Register reports: The International Trade Union Confederation (ITUC) today published a list of seven companies it said were "emblematic" of the ways large international corporations have begun tossing their weight around to influence global affairs. Those businesses, ITUC noted, violate trade union and alleged human rights, monopolize media and technology, exacerbate the climate catastrophe and try to privatize public services in a way that "protects and expands [their] own profits by undermining democracy." "These companies deploy complex lobbying operations to undermine popular will and disrupt existing or nascent global policy that could hold them accountable," ITUC wrote. The desire for greater corporate power, the Confederation added, invariably puts corporate interests in bed with anti-democratic political movements like the modern far-right. Right-wing politicians, ITUC noted, tend to lower taxes, undercut higher wages for workers, crack down on trade unions, and the like - all things sure to please the likes of corporations like Amazon, Tesla, and Meta as evidenced by plenty of prior reporting and research. For Amazon, the ITUC criticized the company for becoming "notorious for its union busting and low wages, monopoly in e-commerce, egregious carbon emissions through its AWS [datacenters], corporate tax evasion and lobbying."

Meta was accused of exploiting user data, undermining privacy laws, manipulating global information, and failing to regulate harmful content on its platforms. "Meta's algorithms can quite literally alter humanity's perceptions of reality," ITUC said. "Its revenue model exploits trillions of personalized data points to deliver highly effective advertising." Some have referred to the company as "a foreign state, populated by people without sovereignty, ruled by a leader with absolute power."

As for Tesla, it was condemned for poor labor practices, anti-union politics, unsafe working conditions, human rights violations, and environmental damage in its supply chain. "The world's most highly-valued automaker has quickly become known as one of its most belligerent employers. Tesla's rapid market success has been outpaced only by the descent of its corporate leaders into anti-democratic, anti-union politics."

An anonymous reader quotes a report from TechCrunch: The home of the Golden State Warriors was packed on Tuesday evening this week, but it wasn't to watch Steph Curry. Thousands of fans gathered at the Chase Center in downtown San Francisco to watch one of Silicon Valley's biggest ballers, Meta CEO Mark Zuckerberg, sit down for a conversation with the hosts of the Acquired podcast, David Rosenthal and Ben Gilbert. Shortly after hopping onstage, Zuckerberg joked that he might need to schedule his next appearance in order to apologize for whatever he was about to say. After a beat, he added that he was just kidding and that, in fact, his days of apologizing are over.

Zuckerberg has had something of a rebrand recently. He raises cattle in Hawaii now, has long bouncy curls and a gold chain, and commissions Roman-style statues of his wife. Onstage, the Facebook founder wore a boxy T-shirt he designed himself alongside fashion designer Mike Amiri that read "learning through suffering" in Greek letters. The tongue-in-cheek comment about apologizing was a reference to Nvidia CEO Jensen Huang, who himself addressed a flub he'd made on the Acquired podcast earlier this year, via a pre-recorded video on a screen hanging over the crowd. Huang's original comment -- that he never would have started Nvidia if he knew what he did today -- was grossly taken out of context, he said. In the video, he clarified that he absolutely would start Nvidia again, and that his comment was more about the blissful ignorance of startup founders.

While Zuckerberg's opening comment was just a friendly jab at Huang, it set the tone for Zuckerberg's new attitude toward life and business. The founder of Facebook has spent a lot of time apologizing for Facebook's content moderation issues. But when reflecting on the biggest mistakes of his career, Zuckerberg said his largest one was a "political miscalculation" that he described as a "20-year mistake." Specifically, he said, he'd taken too much ownership for problems allegedly out of Facebook's control. "Some of the things they were asserting that we were doing or were responsible for, I don't actually think we were," said Zuckerberg. "When it's a political problem there are people operating in good faith who are identifying a problem and want something to be fixed, and there are people who are just looking for someone to blame."

An anonymous reader quotes a report from TechCrunch: Meta on Friday published an update on how it plans to comply with the Digital Markets Act (DMA), the European law that aims to promote competition in digital marketplaces, where the law concerns the company's messaging apps, Messenger and WhatsApp. As Meta notes in a blog post, the DMA requires that it provide an option in WhatsApp and Messenger to connect with interoperable third-party messaging services and apps. Meta says it's building notifications into WhatsApp and Messenger to inform users about these third-party integrations and alert them when a newly compatible third-party messaging app comes online. The company also says it's introducing an onboarding flow in WhatsApp and Messenger where users can learn more about third-party chats and switch them on. From the flow, users will be able to set up a designated folder for third-party messages or, alternatively, opt for a combined inbox.

In 2025, Meta will roll out group functionality for third-party chats, and, in 2027, it'll launch voice and video calling in accordance with the DMA. And at some unspecified point in the future, Meta will bring "rich messaging" features for third-party chats to WhatsApp and Messenger, like reactions, direct replies, typing indicators and read receipts, the company says. "We will keep collaborating with third-party messaging services in order to provide the safest and best experience," Meta wrote in the post. "Users will start to see the third-party chat option when a third-party messaging service has built, tested and launched the necessary technology to make the feature a positive and secure user experience."

An anonymous reader quotes a report from Reuters: Facebook owner Meta struck a deal to buy geothermal power from Sage Geosystems to supply its U.S. data centers, it said on Monday, as it races to build out the infrastructure to support its massive investments in energy-hungry artificial intelligence. The first phase of the 150-megawatt project should be operational by 2027 and "significantly" expand the use of geothermal power in the United States, the social media company said. The location has yet to be determined, but the companies said it will be east of the Rocky Mountains. Financial terms of the deal were not disclosed. [...]

Sage, which is based in Houston, is a four-year-old startup developing next-generation technology that it says can be deployed in more locations than traditional geothermal, which requires naturally occurring underground reservoirs of hot water and accounts for 0.4% of U.S. power generation. The company is backed by oil and gas firms Chesapeake Energy and Nabors Industries and venture capital firms Virya and Helium-3 Ventures. The project for Meta would be Sage's largest to date by far. The company said it first validated the technology in the field just two years ago. A Meta spokesperson told Reuters the company expected the Sage Geosystems energy to feed the power grid, rather than directly supplying any specific data center.

According to The Information (paywalled), Meta plans to ship an extremely light mixed reality headset in 2027, codenamed Puffin. It follows a report that the company canceled a high-end headset planned for the same year, which previous reports speculated as being a Quest Pro 2. UploadVR reports: Puffin reportedly resembles "a bulky pair of glasses" and weighs less than 110 grams, yet is an opaque VR-style headset with pancake lenses and passthrough cameras. Its remarkably light weight is apparently being achieved by offloading both the battery and computing hardware to an external tethered puck, which Meta "hopes" will be small enough to fit in the user's pocket.

If the report is accurate, Puffin will be significantly lighter than any other shipping fully functional VR headset to date. For comparison, Meta Quest 3 weighs around 400 grams without its straps and facial interface and around 515 grams with them. Of this weight, the battery is around 70 grams. The report describes Puffin as not including controllers, instead using the gaze-and-pinch input scheme introduced by Apple Vision Pro.

Meta's Twitter rival, Threads, has reached a new milestone of 200 million active users, according to Instagram head Adam Mosseri. "I'm excited to share that we crossed the 200M milestone on @threads," Mosseri wrote. "My hope is that Threads can inspire ideas that bring people together and this amazing community continues to grow." TechCrunch reports: Growth for Threads has been strong. The text-focused social media platform, which launched in July 2023, reached 150 million users in April 2024 and 175 million users in July on its one-year anniversary, before another growth spurt led it to hit 200 million a month later. [...]

Last year, Zuckerberg suggested Threads has a "good chance" of becoming a platform with more than a billion users. On the latest earnings call, the Meta CEO also described the platform as being on a good growth trajectory. "We're making steady progress towards building what looks like it's going to be another major social app. And we are seeing deeper engagement," he said, adding: "I'm quite pleased with the trajectory here."

In the company's second-quarter earnings report on Wednesday, Meta's Reality Labs unit recorded an operating loss of $4.48 billion. CNBC reports: Since late 2020, the Reality Labs unit has generated cumulative losses of about $50 billion, underscoring CEO Mark Zuckerberg's massive investments into the hardware and software that underpins what he says will be the next era of personal computing. Revenue in Reality Labs, largely derived from the company's Quest family of VR headsets and Ray-Ban Meta smart glasses, came in at $353 million, representing growth of 28% from $276 million a year earlier. Analysts were expecting the unit to bring in $371 million.

Meta will pay Texas $1.4 billion to settle a lawsuit alleging the company used personal biometric data without user consent, marking the largest privacy-related settlement ever obtained by a state. The Texas Tribune reports: The 2022 lawsuit, filed by Texas Attorney General Ken Paxton in state court, alleged that Meta had been using facial recognition software on photos uploaded to Facebook without Texans' consent. The settlement will be paid over five years. The attorney general's office did not say whether the money from the settlement would go into the state's general fund or if it would be distributed in some other way. The settlement, announced Tuesday, does not act as an admission of guilt and Meta maintains no wrongdoing. This was the first lawsuit Paxton's office argued under a 2009 state law that protects Texans' biometric data, like fingerprints and facial scans. The law requires businesses to inform and get consent from individuals before collecting such data. It also limits sharing this data, except in certain cases like helping law enforcement or completing financial transactions. Businesses must protect this data and destroy it within a year after it's no longer needed.

In 2011, Meta introduced a feature known as Tag Suggestions to make it easier for users to tag people in their photos. According to Paxton's office, the feature was turned on by default and ran facial recognition on users' photos, automatically capturing data protected by the 2009 law. That system was discontinued in 2021, with Meta saying it deleted over 1 billion people's individual facial recognition data. As part of the settlement, Meta must notify the attorney general's office of anticipated or ongoing activities that may fall under the state's biometric data laws. If Texas objects, the parties have 60 days to attempt to resolve the issue. Meta officials said the settlement will make it easier for the company to discuss the implications and requirements of the state's biometric data laws with the attorney general's office, adding that data protection and privacy are core priorities for the firm.

Thomas Claburn reports via The Register: Meta's machine-learning model for detecting prompt injection attacks -- special prompts to make neural networks behave inappropriately -- is itself vulnerable to, you guessed it, prompt injection attacks. Prompt-Guard-86M, introduced by Meta last week in conjunction with its Llama 3.1 generative model, is intended "to help developers detect and respond to prompt injection and jailbreak inputs," the social network giant said. Large language models (LLMs) are trained with massive amounts of text and other data, and may parrot it on demand, which isn't ideal if the material is dangerous, dubious, or includes personal info. So makers of AI models build filtering mechanisms called "guardrails" to catch queries and responses that may cause harm, such as those revealing sensitive training data on demand, for example. Those using AI models have made it a sport to circumvent guardrails using prompt injection -- inputs designed to make an LLM ignore its internal system prompts that guide its output -- or jailbreaks -- input designed to make a model ignore safeguards. [...]

It turns out Meta's Prompt-Guard-86M classifier model can be asked to "Ignore previous instructions" if you just add spaces between the letters and omit punctuation. Aman Priyanshu, a bug hunter with enterprise AI application security shop Robust Intelligence, recently found the safety bypass when analyzing the embedding weight differences between Meta's Prompt-Guard-86M model and Redmond's base model, microsoft/mdeberta-v3-base. "The bypass involves inserting character-wise spaces between all English alphabet characters in a given prompt," explained Priyanshu in a GitHub Issues post submitted to the Prompt-Guard repo on Thursday. "This simple transformation effectively renders the classifier unable to detect potentially harmful content." "Whatever nasty question you'd like to ask right, all you have to do is remove punctuation and add spaces between every letter," Hyrum Anderson, CTO at Robust Intelligence, told The Register. "It's very simple and it works. And not just a little bit. It went from something like less than 3 percent to nearly a 100 percent attack success rate."

An anonymous reader quotes a report from Ars Technica: The European Commission (EC) has finally taken action to block Meta's heavily criticized plan to charge a subscription fee to users who value privacy on its platforms. Surprisingly, this step wasn't taken under laws like the Digital Services Act (DSA), the Digital Markets Act (DMA), or the General Data Protection Regulation (GDPR). Instead, the EC announced Monday that Meta risked sanctions under EU consumer laws if it could not resolve key concerns about Meta's so-called "pay or consent" model. Meta's model is seemingly problematic, the commission said, because Meta "requested consumers overnight to either subscribe to use Facebook and Instagram against a fee or to consent to Meta's use of their personal data to be shown personalized ads, allowing Meta to make revenue out of it." Because users were given such short notice, they may have been "exposed to undue pressure to choose rapidly between the two models, fearing that they would instantly lose access to their accounts and their network of contacts," the EC said. To protect consumers, the EC joined national consumer protection authorities, sending a letter to Meta requiring the tech giant to propose solutions to resolve the commission's biggest concerns by September 1.

That Meta's "pay or consent" model may be "misleading" is a top concern because it uses the term "free" for ad-based plans, even though Meta "can make revenue from using their personal data to show them personalized ads." It seems that while Meta does not consider giving away personal information to be a cost to users, the EC's commissioner for justice, Didier Reynders, apparently does. "Consumers must not be lured into believing that they would either pay and not be shown any ads anymore, or receive a service for free, when, instead, they would agree that the company used their personal data to make revenue with ads," Reynders said. "EU consumer protection law is clear in this respect. Traders must inform consumers upfront and in a fully transparent manner on how they use their personal data. This is a fundamental right that we will protect." Additionally, the EC is concerned that Meta users might be confused about how "to navigate through different screens in the Facebook/Instagram app or web-version and to click on hyperlinks directing them to different parts of the Terms of Service or Privacy Policy to find out how their preferences, personal data, and user-generated data will be used by Meta to show them personalized ads." They may also find Meta's "imprecise terms and language" confusing, such as Meta referring to "your info" instead of clearly referring to consumers' "personal data." A Meta spokesperson said in a statement: "Subscriptions as an alternative to advertising are a well-established business model across many industries. Subscription for no ads follows the direction of the highest court in Europe and we are confident it complies with European regulation."

Nigeria fined Meta for $220 million on Friday, alleging the tech giant violated the country's local consumer, data protection and privacy laws. Reuters reports: Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) said Meta appropriated the data of Nigerian users on its platforms without their consent, abused its market dominance by forcing exploitative privacy policies on users, and meted out discriminatory and disparate treatment on Nigerians, compared with other jurisdictions with similar regulations. FCCPC chief Adamu Abdullahi said the investigations were jointly held with Nigeria's Data Protection Commission and spanned over 38 months. The investigations found Meta policies don't allow users the option or opportunity to self-determine or withhold consent to the gathering, use, and sharing of personal data, Abdullahi said.

"The totality of the investigation has concluded that Meta over the protracted period of time has engaged in conduct that constituted multiple and repeated, as well as continuing infringements... particularly, but not limited to abusive, and invasive practices against data subjects in Nigeria," Abdullahi said. "Being satisfied with the significant evidence on the record, and that Meta has been provided every opportunity to articulate any position, representations, refutations, explanations or defences of their conduct, the Commission have now entered a final order and issued a penalty against Meta," Abdullahi said. The final order mandates steps and actions Meta must take to comply with local laws, Abdullahi said.

An anonymous reader quotes a report from The Atlantic: Now, after years of contentious relationships with academic researchers, Meta is opening a small pilot program that would allow a handful of them to access Instagram data for up to about six months in order to study the app's effect on the well-being of teens and young adults. The company will announce today that it is seeking proposals that focus on certain research areas -- investigating whether social-media use is associated with different effects in different regions of the world, for example -- and that it plans to accept up to seven submissions. Once approved, researchers will be able to access relevant data from study participants -- how many accounts they follow, for example, or how much they use Instagram and when. Meta has said that certain types of data will be off-limits, such as user-demographic information and the content of media published by users; a full list of eligible data is forthcoming, and it is as yet unclear whether internal information related to ads that are served to users or Instagram's content-sorting algorithm, for example, might be provided. The program is being run in partnership with the Center for Open Science, or COS, a nonprofit. Researchers, not Meta, will be responsible for recruiting the teens, and will be required to get parental consent and take privacy precautions.

According to Axios, Meta will withhold future multimodel AI models from customers in the European Union "due to the unpredictable nature of the European regulatory environment." From the report: Meta plans to incorporate the new multimodal models, which are able to reason across video, audio, images and text, in a wide range of products, including smartphones and its Meta Ray-Ban smart glasses. Meta says its decision also means that European companies will not be able to use the multimodal models even though they are being released under an open license. It could also prevent companies outside of the EU from offering products and services in Europe that make use of the new multimodal models. The company is also planning to release a larger, text-only version of its Llama 3 model soon. That will be made available for customers and companies in the EU, Meta said.

Meta's issue isn't with the still-being-finalized AI Act, but rather with how it can train models using data from European customers while complying with GDPR -- the EU's existing data protection law. Meta announced in May that it planned to use publicly available posts from Facebook and Instagram users to train future models. Meta said it sent more than 2 billion notifications to users in the EU, offering a means for opting out, with training set to begin in June. Meta says it briefed EU regulators months in advance of that public announcement and received only minimal feedback, which it says it addressed. In June -- after announcing its plans publicly -- Meta was ordered to pause the training on EU data. A couple weeks later it received dozens of questions from data privacy regulators from across the region.

The United Kingdom has a nearly identical law to GDPR, but Meta says it isn't seeing the same level of regulatory uncertainty and plans to launch its new model for U.K. users. A Meta representative told Axios that European regulators are taking much longer to interpret existing law than their counterparts in other regions. A Meta representative told Axios that training on European data is key to ensuring its products properly reflect the terminology and culture of the region.

Ahead of its one-year anniversary, Meta CEO Mark Zuckerberg announced that Threads has reached more than 175 million monthly active users. The Verge reports: Back when it arrived in the App Store on July 5th, 2023, Musk was taking a wrecking ball to the service formerly called Twitter and goading Zuckerberg into a literal cage match that never happened. A year later, Threads is still growing at a steady clip -- albeit not as quickly as its huge launch -- while Musk hasn't shared comparable metrics for X since he took over.

As with any social network, and especially for Threads, monthly users only tell part of the growth story. It's telling that, unlike Facebook, WhatsApp, and Instagram, Meta hasn't shared daily user numbers yet. That omission suggests Threads is still getting a lot of flyby traffic from people who have yet to become regular users. I've heard from Meta employees in recent months that much of the app's growth is still coming from it being promoted inside Instagram. Both apps share the same account system, which isn't expected to change.

Brazil's national data protection authority ruled on Tuesday that Meta must stop using data originating in the country to train its artificial intelligence models. The Associated Press reports: Meta's updated privacy policy enables the company to feed people's public posts into its AI systems. That practice will not be permitted in Brazil, however. The decision stems from "the imminent risk of serious and irreparable or difficult-to-repair damage to the fundamental rights of the affected data subjects," the agency said in the nation's official gazette. [...] Hye Jung Han, a Brazil-based researcher for the rights group, said in an email Tuesday that the regulator's action "helps to protect children from worrying that their personal data, shared with friends and family on Meta's platforms, might be used to inflict harm back on them in ways that are impossible to anticipate or guard against."

But the decision regarding Meta will "very likely" encourage other companies to refrain from being transparent in the use of data in the future, said Ronaldo Lemos, of the Institute of Technology and Society of Rio de Janeiro, a think-tank. "Meta was severely punished for being the only one among the Big Tech companies to clearly and in advance notify in its privacy policy that it would use data from its platforms to train artificial intelligence," he said. Compliance must be demonstrated by the company within five working days from the notification of the decision, and the agency established a daily fine of 50,000 reais ($8,820) for failure to do so. In a statement, Meta said the company is "disappointed" by the decision and insists its method "complies with privacy laws and regulations in Brazil."

"This is a step backwards for innovation, competition in AI development and further delays bringing the benefits of AI to people in Brazil," a spokesperson for the company added.

An anonymous reader quotes a report from Ars Technica: Meta continues to hit walls with its heavily scrutinized plan to comply with the European Union's strict online competition law, the Digital Markets Act (DMA), by offering Facebook and Instagram subscriptions as an alternative for privacy-inclined users who want to opt out of ad targeting. Today, the European Commission (EC) announced preliminary findings that Meta's so-called "pay or consent" or "pay or OK" model -- which gives users a choice to either pay for access to its platforms or give consent to collect user data to target ads -- is not compliant with the DMA. According to the EC, Meta's advertising model violates the DMA in two ways. First, it "does not allow users to opt for a service that uses less of their personal data but is otherwise equivalent to the 'personalized ads-based service." And second, it "does not allow users to exercise their right to freely consent to the combination of their personal data," the press release said.

Now, Meta will have a chance to review the EC's evidence and defend its policy, with today's findings kicking off a process that will take months. The EC's investigation is expected to conclude next March. Thierry Breton, the commissioner for the internal market, said in the press release that the preliminary findings represent "another important step" to ensure Meta's full compliance with the DMA. "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," Breton said. A Meta spokesperson told Ars that Meta plans to fight the findings -- which could trigger fines up to 10 percent of the company's worldwide turnover, as well as fines up to 20 percent for repeat infringement if Meta loses. The EC agreed that more talks were needed, writing in the press release, "the Commission continues its constructive engagement with Meta to identify a satisfactory path towards effective compliance." Meta continues to claim that its "subscription for no ads" model was "endorsed" by the highest court in Europe, the Court of Justice of the European Union (CJEU), last year.

"Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA," Meta's spokesperson said. "We look forward to further constructive dialogue with the European Commission to bring this investigation to a close."

Meta rolled out its ad-free subscription service option last November. "Depending on where you purchase it will cost $10.5/month on the web or $13.75/month on iOS and Android," said the company in a blog post. "Regardless of where you purchase, the subscription will apply to all linked Facebook and Instagram accounts in a user's Accounts Center. As is the case for many online subscriptions, the iOS and Android pricing take into account the fees that Apple and Google charge through respective purchasing policies."