EU privacy body takes on Meta for ‘consent-or-pay’ model

18 Apr 2024

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The EDPB said that offering only a paid alternative to services which involve processing personal data for targeted ads ‘should not be the default way forward’.

The European Data Protection Board (EDPB) has giving the opinion that Meta needs to give EU consumers “a real choice” when it comes to its new subscription model, which currently sees users either pay for an ad-free version of its apps or consent to targeted advertising.

Dubbed ‘consent or pay’, the model released last year is seen by some as a smokescreen that aims to justify a massive collection of data, a practice that many EU consumer groups have said is illegal under the GDPR.

According to an EDPB statement published yesterday (17 April), the body considers that, in most cases, it will “not be possible” for large online platforms such as Meta to comply with the requirements for valid consent if they “confront users only with a choice between consenting to processing of personal data for behavioural advertising purposes and paying a fee”.

It said that offering only a paid alternative to services which involve the processing of personal data for behavioural advertising purposes “should not be the default way forward” for controllers.

“When developing alternatives, large online platforms should consider providing individuals with an ‘equivalent alternative’ that does not entail the payment of a fee. If controllers do opt to charge a fee for access to the ‘equivalent alternative’, they should give significant consideration to offering an additional alternative,” the EDPB explained.

“This free alternative should be without behavioural advertising, for example, with a form of advertising involving the processing of less or no personal data. This is a particularly important factor in the assessment of valid consent under the GDPR.”

The new model was first reported on late last year and later confirmed by Meta. It means EU users of Meta apps Instagram and Facebook have a choice between using the apps for free with personalised ads enabled or signing up to a monthly subscription for an uninterrupted and privacy-friendly experience.

In February, eight consumer groups from the European Consumer Organisation (BEUC) network filed complaints with their national data protection authorities against Meta. Participating groups come from various countries including Spain, France, Denmark and Greece.

Ursula Pachl, deputy director-general of BEUC, said at the time that the new model is Meta’s latest effort to justify “massive commercial surveillance” on its users.

Now, the EDPB has echoed some of these sentiments. Anu Talus, chair of the body, said that online platforms should give users a “real choice” when employing ‘consent-or-pay’ models.

“The models we have today usually require individuals to either give away all their data or to pay. As a result, most users consent to the processing in order to use a service, and they do not understand the full implications of their choices.”

Following the EDPB opinion – which Meta has not yet responded to – privacy rights activist Max Schrems said that Meta is now “out of options” in the EU.

“It must now give users a genuine yes/no option for personalised advertising. It can still charge sites for reach, engage in contextual advertising and the like – but tracking people for ads needs a clear ‘yes’ from users.”

Last month, Meta offered to lower the price of its ad-free subscription model for Facebook and Instagram in the EU market.

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Vish Gain was a journalist with Silicon Republic

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