Close Menu
    Facebook LinkedIn YouTube Instagram X (Twitter)
    Blue Tech Wave Media
    Facebook LinkedIn YouTube Instagram X (Twitter)
    • Home
    • Leadership Alliance
    • Exclusives
    • Internet Governance
      • Regulation
      • Governance Bodies
      • Emerging Tech
    • IT Infrastructure
      • Networking
      • Cloud
      • Data Centres
    • Company Stories
      • Profiles
      • Startups
      • Tech Titans
      • Partner Content
    • Others
      • Fintech
        • Blockchain
        • Payments
        • Regulation
      • Tech Trends
        • AI
        • AR/VR
        • IoT
      • Video / Podcast
    Blue Tech Wave Media
    Home » Meta faces EU scrutiny over ‘pay or consent’ model
    23-07-Meta-EU
    23-07-Meta-EU
    Social

    Meta faces EU scrutiny over ‘pay or consent’ model

    By Elodie QianJuly 23, 2024No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    • The EU has warned Meta that its “pay or consent” model could be in violation of consumer protection laws, demanding changes by September 1.
    •  The EU’s Consumer Protection Cooperation has highlighted concerns over Meta’s “free” service description for its platforms, which lacks transparency in regard to user data consent for advertising.

    OUR TAKE
    Meta, one of the world’s largest social media giants, has recently faced a challenge in the European Union over its “pay or consent” business model. The EU’s Consumer Protection Co-operation Network (CPC) has expressed concern that Meta’s proposed model may violate consumer protection regulations. The controversy not only touches on sensitive issues of privacy and data protection, but also triggers a broader discussion on the sustainability of social media business models.

    –Elodie Qian, BTW reporter

    What happened

    The European Union has set its sights on Meta’s novel approach to monetisation, dubbing its “pay or consent” model potentially in breach of consumer protection laws. The EU’s Consumer Protection Cooperation (CPC) Network states that Meta must revise its strategy by September 1, or risk incurring penalties.

    Introduced in the previous year, Meta’s model offers users a binary choice: subscribe to a monthly fee of up to €12.99 ($14.14) for an ad-free experience on Facebook and Instagram, or agree to the collection and utilisation of personal data to facilitate personalised advertising.

    The EU has taken issue with what it perceives as an invasion of privacy through data usage, having already imposed charges under the Digital Markets Act and hefty fines under the General Data Protection Regulation (GDPR) for Meta’s international data transfers.

    CPC regulators, prompted by consumer advocacy groups, have criticised Meta for employing convoluted language to elucidate the workings of both the paid and “free” versions of its platforms.

    They argue that the company’s tactics pressured individuals into making hasty decisions without adequate consideration of the implications. Furthermore, they contend that labelling the ad-free versions as “free” is deceptive, given that users are still required to consent to targeted advertising based on their data.

    Also read: Meta announces withholding its latest AI model from the EU

    Also read: EU accuses Meta of violating digital competition rules

    Why it’s important

    EU Commissioner for Justice, Didier Reynders, has made it clear that customers should not be deceived into believing that a subscription guarantees an ad-free experience, or that the service is free while Meta profits from their personal information.

    Transparency regarding the use of user data is paramount and companies must be transparent upfront about how they use user data, he added, he asserts.

    In response, Meta spokesperson Matt Pollard said in an email, “Subscriptions as an alternative to advertising are a well-established business model across many industries. Subscription for no ads follows the direction of the highest court in Europe and we are confident it complies with European regulation.”

    However, the CPC has accused Meta of contravening the Unfair Commercial Practices Directive and the Unfair Contract Terms Directive, with potential fines reaching up to 4% of the company’s annual revenue for the EU regions in question. As Meta navigates these regulatory challenges, the industry and consumers alike await the outcome.

    'pay or consent' model EU META
    Elodie Qian

    Elodie Qian is an intern reporter at BTW Media covering artificial intelligence and products. She graduated from Sichuan International Studies University. Send tips to e.qian@btw.media.

    Related Posts

    Orange Business: Unveils defence division

    July 11, 2025

    Africell: Supports African women in arts and culture

    July 11, 2025

    AFRINET SA: Expands digital services in the DRC

    July 10, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    CATEGORIES
    Archives
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023

    Blue Tech Wave (BTW.Media) is a future-facing tech media brand delivering sharp insights, trendspotting, and bold storytelling across digital, social, and video. We translate complexity into clarity—so you’re always ahead of the curve.

    BTW
    • About BTW
    • Contact Us
    • Join Our Team
    TERMS
    • Privacy Policy
    • Cookie Policy
    • Terms of Use
    Facebook X (Twitter) Instagram YouTube LinkedIn

    Type above and press Enter to search. Press Esc to cancel.