EU consumer authorities on Monday told Facebook owner Meta to take steps to allay European consumer groups’ fears over the new “pay or consent” model or face further action.
Meta’s system launched late last year means users must pay to avoid data collection or agree to share their personal data with Facebook and Instagram to continue using the platforms for free.
European consumer groups, including France and Spain, have lodged complaints with the network of consumer protection authorities (CPC) about the privacy payment model.
Now national consumer protection authorities in Europe have sent a letter to Meta, warning that the launch of the model “could potentially be considered unfair and counterproductive”.
There are concerns that Meta misled or confused consumers with its language, different screens and other practices as it rolled out the new system.
Meta has until September 1 to respond to the letter and offer solutions.
All eyes are on AI to boost Big Tech’s profits
EU regulators at the European Commission coordinated action with the CPC network.
“If Meta does not take the necessary steps to resolve the concerns raised, CPC authorities may decide to take enforcement action, including sanctions,” the Commission said in a statement.
Meta has faced heavy scrutiny of the model amid concerns about user privacy.
Earlier this month, EU regulators accused Meta of breaching the bloc’s new competition rules with the model which Brussels said forced a “binary choice” on users.
If the breach is confirmed, it could mean heavy fines for the US giant.
A Meta representative defended the model, insisting it abides by the rules.
“Subscriptions as an alternative to advertising are an established business model in many industries,” the spokesperson said.
“The no ad subscription follows the highest court guidelines in Europe and we are confident that it complies with European regulation.”
The CrowdStrike crash raises questions about the technology’s reliance
The European Consumer Organization welcomed the latest move against Meta’s initiative.
Agustin Reyna, director general of the umbrella group for European consumer groups, urged Meta “to change the payment or consent selection screen as soon as possible and in a way that provides consumers with fair and free choices”.
Meta and the EU are at loggerheads over the bloc’s tougher rules.
The company last week said it would delay the launch of its most powerful AI models in Europe because of what it called unpredictable EU regulation.
Last year Meta delayed the launch of its alternative Twitter Threads by several months in the EU.
Source: AFP