BRUSSELS, Belgium: EU consumer authorities have ordered Meta, Facebook’s parent company, to address concerns from European consumer groups about its new “pay or consent” model or face potential repercussions.
This system, launched late last year, forces users to either pay to avoid data collection or agree to share their private data to continue using Facebook and Instagram for free.
Consumer groups from France and Spain, among others, have lodged complaints with the network of Consumer Protection Authorities (CPC) against this model. National consumer protection authorities in Europe have now sent a letter to Meta, indicating that the model’s rollout “could potentially be considered unfair and contrary” to consumer rights. They raised concerns that Meta may have misled or confused consumers with its language, different screens, and other practices during the implementation.
Meta has until September 1 to respond to the letter and propose solutions. The European Commission, in coordination with the CPC network, has warned that failure to address these concerns could lead to enforcement actions, including sanctions. Meta has faced significant scrutiny over the model, particularly regarding user privacy. Earlier this month, EU regulators accused Meta of violating the bloc’s new competition rules by forcing a “binary choice” on users, which could result in hefty fines if confirmed.
A Meta spokesperson defended the model, asserting that it adheres to European regulations. “Subscriptions as an alternative to advertising are a well-established business model across many industries,” the spokesperson said. “Subscription for no ads aligns with the directives of the highest court in Europe, and we are confident it complies with European regulation.”
Meta and the EU are currently in conflict over the bloc’s stricter regulations. Last week, Meta announced it would delay the release of its most powerful generative AI models in Europe due to what it described as unpredictable EU regulation. Additionally, last year, Meta delayed the European release of its Twitter alternative, Threads, by several months.
