The European Union believes that people should not be forced to make a difficult decision between surrendering their data to Meta and other dominant companies or paying a price.
The European Data Protection Board (EDPB) has expressed concerns regarding the "consent or pay" models, stating that they may not meet the necessary criteria for valid consent.
EU Calls Out Meta's 'Consent-or-Pay' Model
These models require individuals to either provide their data for behavioral advertising or pay for privacy.
The EDPB asserts that it is not ideal for major online platforms to default to offering only paid alternatives for data collection.
The recommendation emphasizes that these platforms should strongly consider offering a free option that minimizes or eliminates data processing.
At present, European Union users have the option to subscribe to an ad-free service for €10 ($11) per month or choose to share their data.
An investigation by the EU is currently underway to determine whether this system aligns with the Digital Markets Act, which became effective in early March, according to Reuters.
In November, Meta introduced a system where users can choose to either pay or give consent for the use of their data in ad targeting, in exchange for a monthly fee. However, this model has faced criticism from privacy and consumer advocates.
EU Regulators Stance Regarding Data Privacy
Meta has been able to generate significant revenue by selling user data to advertisers. However, this approach has resulted in numerous conflicts with EU regulators regarding data privacy.
The most recent announcement followed a request for an opinion from the data protection authorities of the Netherlands, Norway, and the German state of Hamburg, regarding Meta's pay-or-consent model, which was brought to the attention of the EDPB.
Meta highlighted an EU court ruling from last year, which it claimed established subscriptions as a viable option from a legal standpoint.
The fate of Meta's model is currently in the hands of the data privacy regulator in Ireland, where the company is based.
Every digital platform is required to adhere to the extensive general data protection regulation (GDPR) set by the European Union. This regulation has been the basis for EU court cases involving Meta.
In its opinion, the EDPB highlighted the discrepancy between Meta's model and the GDPR's stipulation that consent for data use should be freely given.
The EDPB cautioned that the subscription service proposed by Meta should not be the automatic choice for platforms.
According to AFP, it was proposed that platforms should explore an alternative option that would allow users to opt out of being tracked for advertising purposes without any additional cost.
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