Meta's revised paid ad-free service may breach EU privacy laws, consumer group says

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Finance

Posted By Global Banking and Finance Review

Posted on January 23, 2025

Meta's revised paid ad-free service may breach EU privacy laws, consumer group says

By Foo Yun Chee

BRUSSELS (Reuters) - META PLATFORMS REVISED PAID AD-FREE SERVICE MAY STILL BREACH EU PRIVACY, CONSUMER LAWS, CONSUMER GROUP SAYS

CONSUMER GROUP URGES EU REGULATORS TO ACT AGAINST META

Meta Platforms' revised no-ads subscription service may still breach EU consumer and privacy laws in addition to antitrust rules, the European Consumer Organisation (BEUC) said on Thursday as it urged regulators to act against the U.S. tech giant.

Meta, which rolled out the fee-based service for Facebook and Instagram in 2023, subsequently offered European users the option to receive less personalised ads and a 40% cut in the fees last year.

BEUC, which complained about the fee-based service to consumer protection authorities in 2023, said the changes made last year were cosmetic.

"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," BEUC Director General Agustin Reyna said.

"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," he said.

BEUC alleges that Meta's misleading practices and unclear terms steer users towards its preferred option.

The consumer group also said it is not possible for users to freely consent to their data being processed and that Meta does not minimise the data it collects from users.

BEUC also accused Meta of degrading the service to users who do not agree to the use of their personal data.

Meta has said last year's changes were in response to demands from EU regulators. The company was charged by EU antitrust regulators in July last year for breaching the Digital Markets Act, saying its paid ad-free service constituted a binary choice for users.

(Reporting by Foo Yun Chee. Editing by Jane Merriman)

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