EU Scrutinizes Meta’s Controversial Consent Model
The European Commission has formally requested information from Meta regarding its “pay or be tracked” approach to user consent in the EU. This move comes under the Digital Services Act (DSA), marking increased regulatory pressure on the social media giant’s advertising practices.
Key Details of the EU’s Request
- Formal Request for Information (RFI) issued to Meta on March 1, 2024
- Focus areas: Advertising practices, recommender systems, and risk assessments related to Meta’s subscription model
- Deadline: Meta must respond by March 22, 2024
The Controversial ‘Consent or Pay’ Model
Meta implemented this business model in late 2023 after previous legal challenges to its data processing practices. The current system presents EU users with two options:
- Pay for ad-free access: Starting at €9.99/month
- Accept tracking: Free access in exchange for data collection and targeted ads
This approach has drawn criticism from privacy advocates and regulators who argue it may violate EU data protection principles requiring:
- Freely given consent
- Specific and informed user choices
- Easy withdrawal of consent
Regulatory Concerns and Potential Consequences
Data Protection Issues
- GDPR compliance: Questions about whether consent is truly voluntary when tied to payment
- Minors’ protection: Concerns about how Meta prevents underage users from being tracked
- Sensitive data: Uncertainty about safeguards for political, religious, or sexual orientation data
DSA Violation Risks
- Potential fines up to 6% of global annual turnover for non-compliance
- Previous RFIs sent to Meta regarding disinformation, child protection, and election security
Ongoing Investigations and Next Steps
The European Data Protection Board is expected to issue an opinion on the legality of “consent or pay” models later this month. Meanwhile:
- Ireland’s Data Protection Commission continues its assessment
- EU Parliament members have pressed for clearer enforcement action
- The Commission will evaluate Meta’s response before deciding on further steps
Broader Implications for Digital Advertising
This case highlights growing tensions between:
- Tech companies’ advertising-based business models
- EU’s strict privacy regulations
- Consumer expectations for free access to social media
The outcome could set important precedents for how digital platforms obtain user consent under EU law.
What’s Next?
All eyes will be on:
- Meta’s response to the RFI by March 22
- The European Data Protection Board’s upcoming opinion
- Potential formal investigation by the EU Commission
This development represents a significant test case for the DSA’s effectiveness in regulating major platforms’ data practices.
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