Meta faces renewed scrutiny over controversial pay-or-consent policy in the EU

Meta, the parent company of Facebook and Instagram, is once again under fire for its revised pay-or-consent subscription model, which the European Consumer Organisation (BEUC) claims breaches EU consumer, privacy, and antitrust laws.

The pay-or-consent system, initially launched in late 2023, gave users two options: consent to data processing for targeted advertising or pay a subscription fee to avoid personalised ads. The model has since undergone revisions, including a reduction in subscription fees and an option for less personalised ads. However, BEUC has criticised these changes as superficial and insufficient.

“European consumers should not be fooled by the cosmetic changes Meta applies to its one-year-old pay-or-consent policy,” said BEUC director general Agustin Reyna. “In our view, the tech giant fails to address the fundamental issue that Facebook and Instagram users are not being presented with a fair choice and is making a weak bid to argue it is complying with EU law while still pushing users towards its behavioural ads system.”

Meta has defended its updated policy, with a spokesperson stating that the changes introduced in November 2024 meet the requirements of EU regulators and go beyond legal obligations. However, BEUC alleges that Meta’s interface and unclear terms mislead users into accepting its preferred data processing practices.

The consumer organisation also argues that Meta fails to obtain freely given consent, does not sufficiently minimise data collection, and degrades the user experience for those who refuse to share their data.

The European Commission has been closely monitoring Meta’s practices. In July 2024, the Commission charged the company with violating the Digital Markets Act, noting that the pay-or-consent model forced users into a binary choice that did not comply with EU rules.

BEUC, alongside its member organisations, has called on EU regulators to take swift enforcement action against Meta. “It is important for consumer and data protection authorities and the European Commission to quickly investigate Meta’s latest policy and, if needed, take immediate and effective measures to protect consumers,” Reyna added.

This latest dispute highlights ongoing tensions between tech giants and European regulators over privacy and consumer rights. With Meta designated as a gatekeeper under the Digital Markets Act, the stakes are high, and further investigations could result in significant penalties for the company.