Meta , to respond to the European Commission's concerns about its "Pay or Consent" model, or face sanctions.
The European Commission said that the Consumer Protection Cooperation Network (CPC) informed Meta about possible violations of consumer protection laws on Facebook and Instagram.
Read more: Meta's advertising model violates EU rules
The new practice is considered misleading and confusing, with authorities concerned that users may be pressured into making a quick choice – either paying a monthly subscription or consenting to the use of their personal data for targeted advertising. The agency said this may stem from consumers’ fear that they would “immediately lose access to their accounts and network of contacts.”
Meta, which introduced a subscription plan for European Union users in late 2023, is under pressure for offering a “choice” that is essentially no choice, imposing a “privacy fee” for exercising users’ data protection rights.
Under the EU's Digital Markets Act (DMA), companies with gatekeeper roles are required to seek explicit consent from users before using their data for services beyond basic functionality (e.g. advertising) or to provide access to a less personalized but equivalent version of the platforms for those who refuse to consent.
“Gatekeepers cannot operate the service or certain features without the consent of users,” the Commission said this month, arguing that Meta’s model violates the DMA. The Commission also accused Meta of using vague terms and presenting the service as “free” when in reality it forces users to agree to the use of their data for personalized advertising. In addition, users are confused by having to navigate through multiple screens to determine how their data is being used and processed for advertising purposes.
Meta, for its part, considers the paid version as a legitimate business model and cites the ruling of the Court of Justice of the European Union (CJEU), which allows companies to offer an equivalent alternative version of its service for an appropriate fee that is not based on data collection for advertising.
It is worth noting that this concerns new users who are now signing up for Meta's services and not existing users.
See also: Meta stops using AI in Brazil
“Users should not fall into the trap of thinking that they will either pay to not see ads or receive a free service, when in reality they are agreeing that the company will use their personal data to generate advertising revenue,” said Didier Reynders, EU Justice Commissioner. “Users must be informed in advance and with full transparency about how their personal data. This is a fundamental right that we will protect.”
A few days ago, Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) fined Meta $220 million, following an investigation that found the company's data sharing on Facebook and WhatsApp violated local consumer, protection , and privacy laws by collecting users' information without their consent.
“Meta’s applications will immediately cease sharing WhatsApp users’ information with other Facebook companies and third-parties until users have actively and voluntarily consented to any use that the Meta parties intend to make of the data subject’s information,” the final order issued last week said.
In May, Turkey's competition board imposed a $37.20 million fine on the American tech giant over its data-sharing practices on Facebook, Instagram, Threads , and WhatsApp.
At the same time, it is reported that Oracle has agreed to pay $115 million to settle a class action lawsuit in the US, accused of violating users' privacy by collecting and selling their personal data to third parties.
Google has also been at the center of a new investigation by the Italian data protection authority into how it obtains user consent before combining personal data from different services and whether it provides sufficient information about this choice .
Read more: Meta: Removes any post that mentions the term "Zionist"
Garante states that Google may use techniques and methods related to consent, as well as mechanisms that may limit the user's freedom of choice.
“The user may be induced to make a decision that he would not have made under different circumstances, by consenting to the combined and cross-use of his personal data between the services.”
Source: thehackernews
