The European Commission (EC) has intervened to block Meta’s controversial plan to charge users a subscription fee for privacy on its platforms. Rather than acting under laws like the Digital Services Act (DSA), Digital Markets Act (DMA), or General Data Protection Regulation (GDPR), the EC cited EU consumer protection laws as the basis for its action.
Why Did the EC Take Action Against Meta?
On Monday, the EC warned Meta that it faced potential sanctions if it didn’t address significant concerns about its “pay or consent” model. The EC noted that Meta’s approach forced users to either pay for Facebook and Instagram or consent to the use of their personal data for personalised ads. The commission argued that the short notice given to users could pressure them into making hasty decisions, fearing immediate loss of access to their accounts and networks.
What Are the Key Concerns with Meta’s Model?
The EC’s primary concern is that Meta’s model may be misleading, particularly the use of the term “free” for ad-based plans. The commission emphasised that users need to be fully informed about how their data is used to generate revenue through personalised ads. Didier Reynders, the EC’s commissioner for justice, stated that transparency about data use is a fundamental consumer right that the EC intends to protect.
How Might Meta Address the EC’s Concerns?
To comply with the EC’s demands, Meta might need to provide EU users more time to decide between subscription and data consent options. Alternatively, Meta could need to revise the language and user interface used to obtain consent or possibly abandon the “pay or consent” model altogether. Meta’s spokesperson defended the model as compliant with European regulations, citing the endorsement of subscription models by the Court of Justice of the European Union (CJEU). However, privacy advocates argue that this endorsement was hypothetical and not part of a formal ruling.
Meta now faces potential sanctions under the EU’s Unfair Contract Terms Directive, which could include fines up to 4 percent of its annual turnover if it fails to propose satisfactory solutions. Věra Jourová, the EC’s vice president for values and transparency, criticised Meta’s sudden policy shift as “sneaky” and affirmed the EC’s commitment to protecting consumers’ rights to make informed choices.
