EU consumers group says Meta’s revised subscription model may breach consumer protection laws News
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EU consumers group says Meta’s revised subscription model may breach consumer protection laws

The European Consumer Organization (BEUC) said Thursday that Meta’s current pay-or-consent strategy in the EU may violate consumer and data protection laws, urging relevant EU agencies to protect consumers immediately.

The statement accused Meta of using ambiguous terms and confusing interfaces that do not allow users to consent freely to data collection. The organization also said subjecting users who refuse data collection to degraded services amounts to unfair treatment. The statement further argues that Meta’s November amendments failed to resolve critical flaws despite numerous complaints to data protection authorities by early 2024 and a July 2024 European Commission decision that the policy violated the Digital Markets Act.

BEUC asked EU authorities to immediately investigate Meta’s current policy and its potential infringement of consumer rights. Agustín Reyna, director general of the BEUS, added that “European consumers should not be fooled by the cosmetic changes Meta applies to its one-year-old pay or consent policy.”

Meta has announced changes to its ad model in the EU, European Economic Area (EEA), and Switzerland in response to evolving regulations, including the General Data Protection Regulation and Digital Markets Act. Users can now choose between a reduced-cost subscription for an ad-free experience (€5.99/month on the web, €7.99/month on iOS/Android) or free access with advertisement.

Furthermore, a new “less personalized ads” option will show ads based on minimal data like age, location, and gender instead of extensive personal data, but ads may be less relevant. These changes aim to comply with regulatory demands while maintaining a commitment to personalized advertising, which Meta argues benefits users and businesses, especially small enterprises, by driving economic growth.

The Digital Markets Act establishes rules for designating gatekeepers and enforcing obligations and prohibitions to ensure fair and contestable digital markets. Similarly, the General Data Protection Regulation, effective May 25, 2018, harmonizes data privacy laws across Europe, providing consistent personal data protection in all member states.

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