EU consumer authorities have instructed Meta, the owner of Facebook, to address the concerns of European consumer groups regarding its new 'pay or consent' model by Monday's deadline, or risk facing additional measures.
Introduced last year, Meta's new system requires users to pay to prevent data collection, or consent to share their personal data with Facebook and Instagram to continue using the platforms for free. Consumer groups from countries including France and Spain have lodged complaints with the network of consumer protection authorities (CPC) over this pay-for-privacy model.
Now, European national consumer protection authorities have issued a letter to Meta, cautioning that the implementation of this model 'could potentially be considered unfair and contrary.' There are concerns that Meta may have misled or confused consumers through its use of language, various screens, and other practices during the rollout of the new scheme. Meta has been given until September 1 to respond to the letter and propose solutions.
EU regulators from the European Commission have coordinated this action with the CPC network. 'If Meta does not take the necessary steps to address the concerns raised, CPC authorities can decide to take enforcement measures, including sanctions,' the commission stated. Meta has faced intense scrutiny over this model due to privacy concerns. Earlier this month, EU regulators accused Meta of breaching the bloc's new competition rules with the model, which Brussels claims forces a 'binary choice' on users. If the breach is confirmed, significant fines could be imposed on the US tech giant.
A Meta spokesperson defended the model, asserting that it complies with the rules. 'Subscriptions as an alternative to advertising are a well-established business model across many industries,' the spokesperson said. 'Subscription for no ads follows the direction of the highest court in Europe, and we are confident it complies with European regulation.' The European Consumer Organisation has welcomed the recent actions against Meta's initiative. Agustin Reyna, director general of the umbrella group for European consumer groups, has urged Meta 'to change its pay-or-consent choice screen as soon as possible and in a way that provides consumers with a fair and freely-given choice.'
Meta and the EU are currently in a dispute over the bloc's stricter regulations. The company recently announced it would postpone the release of its most powerful generative AI models in Europe due to what it describes as unpredictable EU regulation. Last year, Meta delayed the release of its Twitter alternative, Threads, by several months in the EU.
