Meta Platforms Inc., the tech giant behind Facebook and Instagram, is facing a huge number of complaints across Europe over its contentious ‘pay-or-consent’ approach to user data. On Thursday, consumer advocacy groups from eight European Union (EU) countries lodged formal objections, charging Meta with significant violations of the EU’s stringent data protection laws.
The grievances, directed at national data protection authorities, assert that Meta’s data practices flout core principles of the General Data Protection Regulation (GDPR), such as fair processing and limiting the use and accumulation of personal data. Critics contend that the company’s model of monetizing sensitive information through targeted advertising is fundamentally unfair and infringes on fundamental rights.
At the heart of the controversy is Meta’s recent initiative, providing users with ad-free access to its social platforms for a monthly fee. This move, which followed an EU-wide clampdown on using personal data for ad targeting without explicit consent, has sparked a debate on whether privacy should come at a cost. Ursula Pachl, Deputy Director-General of BEUC, criticized the model, likening it to a ruse that coerces users into paying to protect their privacy.
Meta’s strategy is under intense scrutiny as new EU regulations set to take effect on March 7 promise to fortify the authority of data watchdogs and impose tighter controls on personal data use for advertising, potentially triggering more comprehensive EU investigations.
The Irish Data Protection Commission, Meta’s chief regulator by virtue of the company’s EU headquarters being in Dublin, is currently evaluating Meta’s compliance strategy. Concurrently, the European Data Protection Board (EDPB) is developing a binding opinion to clarify the extent of permissible practices for online platforms.
With the potential for fines up to 4% of annual revenue for serious breaches, the pressure is on Meta to navigate a rapidly changing regulatory landscape. The company has defended its position, citing an EU court ruling that supports offering fee-based alternatives to data monetization. However, the mounting consumer complaints could force a quick decision from regulators, shaping the future of digital privacy and advertising models in Europe.
