The European Commission has set a September 1, 2024 deadline for Meta to respond to concerns about its “pay or consent” advertising approach for Facebook and Instagram. The Consumer Protection Cooperation Network has warned that this model may violate consumer protection laws.
Authorities worry that users might feel pressured to choose between a paid subscription or agreeing to a data use policy for targeted ads, fearing immediate loss of account access. The Commission criticized the model as misleading and confusing.
Meta introduced this subscription option for EU users in late 2023 but has faced criticism for offering what some see as a false choice and charging a “privacy fee” for data protection rights.
The EU’s Digital Markets Act (DMA) requires companies in gatekeeper positions to obtain explicit consent before using user data for services beyond core functionality, such as advertising. The Commission stated that Meta’s approach violates this act by making certain features conditional on user consent.
Additionally, the Commission pointed out Meta’s use of vague terms and misleading “free” branding when, in reality, users must agree to the data use policy for personalized ads. The process for understanding data usage was also deemed unnecessarily complex.
Meta argues that its paid version is a legitimate business model, citing the Court of Justice of the European Union (CJEU) ruling from July. However, this ruling specifically addressed new user sign-ups, not existing users affected by consent model changes.
EU Commissioner for Justice Didier Reynders emphasized the importance of transparent communication about data usage to consumers.
This EU action follows recent fines and investigations against Meta in other countries. Nigeria’s Federal Competition and Consumer Protection Commission fined Meta $220 million for violating local laws on data sharing. Turkey’s competition board imposed a $37.20 million penalty for similar practices.
In related news, Oracle has agreed to a $115 million settlement in a U.S. lawsuit over privacy breaches. Google is under investigation in Italy regarding its user consent practices for combining personal data across services.
These developments highlight the growing global scrutiny of tech giants’ data practices and privacy policies.
The European Commission has set a September 1, 2024 deadline for Meta to respond to concerns about its “pay or consent” advertising approach for Facebook and Instagram. The Consumer Protection Cooperation Network has warned that this model may violate consumer protection laws.
Authorities worry that users might feel pressured to choose between a paid subscription or agreeing to a data use policy for targeted ads, fearing immediate loss of account access. The Commission criticized the model as misleading and confusing.
Meta introduced this subscription option for EU users in late 2023 but has faced criticism for offering what some see as a false choice and charging a “privacy fee” for data protection rights.
The EU’s Digital Markets Act (DMA) requires companies in gatekeeper positions to obtain explicit consent before using user data for services beyond core functionality, such as advertising. The Commission stated that Meta’s approach violates this act by making certain features conditional on user consent.
Additionally, the Commission pointed out Meta’s use of vague terms and misleading “free” branding, when in reality, users must agree to the data use policy for personalized ads. The process for understanding data usage was also deemed unnecessarily complex.
Meta argues that its paid version is a legitimate business model, citing the Court of Justice of the European Union (CJEU) ruling from July. However, this ruling specifically addressed new user sign-ups, not existing users affected by consent model changes.
EU Commissioner for Justice Didier Reynders emphasized the importance of transparent communication about data usage to consumers.
This EU action follows recent fines and investigations against Meta in other countries. Nigeria’s Federal Competition and Consumer Protection Commission fined Meta $220 million for violating local laws on data sharing. Turkey’s competition board imposed a $37.20 million penalty for similar practices.
In related news, Oracle has agreed to a $115 million settlement in a U.S. lawsuit over privacy breaches, and Google is under investigation in Italy regarding its user consent practices for combining personal data across services.
These developments highlight the growing global scrutiny of tech giants’ data practices and privacy policies.
