Facebook and Instagram - EU Consumer Protection checks Meta-Payment Model
European consumer protection authorities are scrutinizing the introduction of a new payment model by US tech company Meta on Facebook and Instagram. According to the assessment of the authorities, Meta may not have informed its users truthfully, clearly, and sufficiently about the model.
Background is that Meta presented its users with a choice in 2023 to either pay for Facebook and Instagram or consent to having their data used for personalized advertising, as the EU Commission announced.
The authorities are examining, among other things, whether Meta used misleading or aggressive practices. Consumers might have been put under undue pressure to make a quick decision between the two models, as they feared losing access to their accounts and contact network right away. It is also questionable whether consumers were able to understand, based on the provided information, how their decision affected their rights.
Their concerns have been communicated to Meta through a letter in the context of the so-called Network for Consumer Protection Cooperation (CPC-Network). The EU Commission coordinates the work in cross-border cases. The European consumer organization BEUC welcomed the actions of the authorities.
Detailed Criticism
In its statement, the EU Commission lists four points with examples. Users might have been misled by the term "free" and not realized that Meta was using their data for personalized advertising and therefore earning money. Furthermore, users might have been confused by being directed to click through various windows and links to find out how Meta uses their data.
Moreover, the impression might have been given that paying customers would no longer see any advertising at all, although they might still encounter ads on the platforms. Pressure might have been applied to users by not granting them access to their accounts until they had made their decision.
Meta now has until September 1 to respond to the allegations. Independent of the aforementioned letter, investigations by the EU Commission are ongoing regarding the so-called "Pay or Consent" model based on new stricter EU legislation for controlling large tech companies. According to the Brussels authorities, it is not in line with EU law that users of Facebook and Instagram have to choose between a monthly fee and a free version with personalized advertising.
- The European Consumer Protection Authority is questioning Meta, the company behind Facebook and Instagram, over their alleged failure to sufficiently inform European consumers about their new payment model.
- The EU Commission has expressed concerns that Meta may have used misleading or aggressive practices to pressure consumers into choosing between paying for Facebook and Instagram or consenting to have their data used for personalized advertising.
- Following these allegations, the United States tech giant has been given until September 1 to respond to the EU Commission's criticisms.
- The EU Commission's concerns about Meta's "Pay or Consent" model are part of broader investigations into the company's practices, which are being conducted under stricter EU legislation for controlling large tech companies.
- The investigation into Meta's payment model is not limited to France, as the EU Commission coordinated a cross-border case through the Network for Consumer Protection Cooperation (CPC-Network), involving consumer protection authorities from various countries in Europe.
