EU consumer authorities have issued a warning to Meta, the owner of Facebook, to address concerns over its new “pay or consent” model or face further action. The system, launched last year, requires users to pay to avoid data collection or agree to share their private data with Facebook and Instagram in order to continue using the platforms for free. European consumer groups, including those in France and Spain, have filed complaints to the network of consumer protection authorities (CPC) over the pay-for-privacy model.
National consumer protection authorities in Europe have sent a letter to Meta, expressing concerns that the rollout of the model could be considered unfair and contrary. There are allegations that Meta misled or confused consumers with its language, different screens, and other practices during the implementation of the new scheme. Meta has been given until September 1 to respond to the letter and provide solutions. The European Commission coordinated the action with the CPC network, warning that enforcement measures, including sanctions, could be taken if Meta does not address the concerns raised.
The pay-or-consent model implemented by Meta has faced scrutiny over concerns about user privacy. EU regulators recently accused Meta of violating the bloc’s competition rules with a model that forces users into a “binary choice.” If the breach is confirmed, Meta could face hefty fines. However, a spokesperson for Meta defended the model, stating that subscriptions as an alternative to advertising are a common business model and that the pay-for-privacy option complies with European regulation. The European Consumer Organisation has welcomed the action taken against Meta’s initiative, urging the company to revise its pay-or-consent choice screen to provide consumers with a fair choice.
Meta and the EU are currently in conflict over the bloc’s stricter regulations. Meta announced last week that it would postpone the release of its most powerful AI models in Europe due to what it described as unpredictable EU regulation. Last year, Meta also delayed the release of its Twitter alternative, Threads, by several months in the EU. The company’s decision to delay these releases reflects its ongoing challenges with navigating the regulatory environment in Europe and ensuring compliance with the region’s regulations. Despite its stance on the pay-or-consent model, Meta may need to make further adjustments to address the concerns raised by EU consumer authorities and maintain its operations in the region.
