EU-Commission: Meta must respond to criticism on payment model
The EU Data Protection Authority EDPB had banned Meta Corporation in November from switching personalized advertising without explicit user consent. Meta responded with a pay-to-use option for its platforms: users can pay a monthly fee if they no longer want to see ads on Facebook and Instagram. Only those who accept personalized ads can continue to use the networks for free.
Critics accuse the company of bypassing EU data protection regulations and effectively forcing users to give up their data. Consumer protection organizations from various EU countries have filed official complaints against this.
The Commission particularly emphasized the pressure being exerted on consumers: users, for whom Facebook and Instagram "often constitute a significant part of their social life and social interactions," are being rushed into a quick decision, as they are denied access to their accounts until they make their decision. This could violate the directive on unfair business practices, the Commission stated.
Furthermore, Meta used imprecise terms and language in the description of its offers and the form of the setting options was confusing, the authority complained. Consumer protection organizations see a breach of the directive on abusive contract clauses in this. If Meta does not react to the criticism, it is up to the consumer protection authorities of the member states to "take enforcement measures and impose sanctions," the Commission threatened.
Meta dismisses the accusations as unfounded. The company is orienting itself with its pay-to-use concept towards the jurisprudence of the European Court of Justice, which has fundamentally approved such payment models in the past few years, the company stated.
- The European Commission has taken note of Meta Platforms' response to the EDPB's ban, implementing a pay-to-use option for their platforms, including Facebook and Instagram.
- Critics, including consumer protection organizations from different EU countries, have filed complaints against Meta's payment model, alleging it forces users to give up their data in exchange for ad-free access.
- Meta argues that its pay-to-use concept aligns with the European Court of Justice's jurisprudence, which has approved similar payment models in recent years.
- The European Commission has suggested that Meta's use of imprecise terms and confusing setting options might breach the directive on abusive contract clauses.
- If Meta fails to address the concerns raised by the European Commission and consumer protection organizations, the commission may allow member states' consumer protection authorities to take enforcement measures and impose sanctions.
