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Meta’s Consent or Pay Data Grab Faces New EU Charges
February 29, 2024Last year, Meta made a controversial decision to switch to charging users in the European Union for an ad-free subscription to access Facebook and/or Instagram. However, users had to agree to be tracked and profiled for ad targeting. This move has triggered a fresh set of complaints from consumer protection authorities in the EU.
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Consumer Rights Groups Push Back on Meta’s Consent or Pay
Consumer rights groups across the EU are filing complaints against Meta‘s consent or pay model. They argue that Meta’s approach violates the bloc’s data protection rules, particularly regarding the validity of consent and the requirement for it to be free, specific, informed, and unambiguous. Eight consumer rights groups from various EU countries argue that Meta lacks a valid legal basis for processing users’ data for ad targeting under the General Data Protection Regulation (GDPR). They assert that Meta’s data processing practices are fundamentally incompatible with European data protection law.
GDPR Principles Violated and BEUC’s Stance
The complaints accuse Meta of violating several GDPR principles, including purpose limitation, data minimization, fair processing, and transparency. Penalties for confirmed breaches of the regulation can be severe, potentially reaching up to 4% of global annual turnover. Ursula Pachl, deputy director general of BEUC, asserts that Meta’s “pay-or-consent” choice is an attempt to legalize its business model of commercial surveillance. BEUC’s legal analysis concludes that Meta’s data processing breaches the GDPR in multiple ways.
Potential Regulatory Action
The European Commission oversees enforcement of Meta’s compliance with the Digital Services Act (DSA) and Digital Markets Act (DMA). These regulations stipulate strict requirements for obtaining consent for data processing for ad targeting purposes. Meta’s controversial consent offer is facing increasing scrutiny, with complaints mounting from both consumer protection and privacy rights groups. This pressure could lead to firmer enforcement action against Meta’s data processing practices.
In summary, Meta’s “consent or pay” model continues to face significant legal challenges and regulatory scrutiny in the EU. Consumer protection and privacy rights groups are pushing back against what they see as unfair and unethical data processing practices. The outcome of these complaints could have far-reaching implications for Meta’s business model and data processing practices in Europe.
