EU Officials Challenge Meta’s ‘Pay or Consent’ Ad-Free Plan
The European Commission has raised concerns about Meta’s latest business strategy, which offers users in the EU, European Economic Area, and Switzerland a choice: continue using Facebook and Instagram with targeted ads for free or pay for an ad-free experience. This Pay or Consent model, designed to comply with EU data protection regulations, is now under fire for potentially violating consumer laws.
The Consumer Protection Cooperation (CPC) Network, a coalition of national authorities that enforce EU consumer protection laws, has questioned Meta’s “pay or consent” approach. According to the European Commission, which coordinated the CPC’s actions, Meta may be in breach of consumer legislation with this model. The CPC Network has outlined various concerns in a letter to Meta, giving the company until September 1 to respond and propose solutions.
The CPC authorities argue that Meta misleads users by presenting its platforms as free if they opt out of the subscription, while still monetizing their personal data through targeted ads. They also accuse Meta of confusing users by making it difficult to find information about how their data is used for ads, as it is scattered across different sections of the privacy policy and terms of service.
Moreover, officials criticize Meta’s use of “imprecise terms and language” that suggest subscribers will see no ads at all. In reality, ads may still appear when engaging with content shared by other users on Facebook or Instagram. Additionally, the CPC claims that Meta pressures long-time users into making a quick decision without sufficient warning or time to consider how this choice impacts their relationship with the company.
Meta introduced this “pay or consent” model last year to align with EU data protection laws while sustaining its advertising revenue. However, CPC officials worry that many consumers might feel pressured to quickly choose between consenting to data collection or paying a fee, fearing immediate loss of access to their accounts and contacts.
This scrutiny is part of broader investigations by the EU into Meta’s compliance with digital market regulations. Earlier this month, the EU suggested that Meta’s approach might breach the Digital Markets Act, which could result in fines up to 10 percent of Meta’s global annual revenue if found guilty. In addition, the European Commission has requested more information under the Digital Services Act and has received complaints from consumer rights groups alleging violations of the EU’s General Data Protection Regulation.
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