The groups argue this infringes the European Union’s General Data Protection Regulation, or GDPR, which lets penalties as high as 4% of annual revenue for the most severe crimes.
Allegations of Improper Data Collection
Meta Platforms Inc., the parent company of Facebook and Instagram, is under fire in Europe for allegedly collecting vast amounts of user data without proper consent.
Eight consumer organizations are set to file complaints with national data watchdogs, accusing Meta of violating the General Data Protection Regulation (GDPR) by creating a “smokescreen” around user consent.
Violation of GDPR
The complaints focus on Meta’s practice of offering ad-free versions of its social media platforms in exchange for payment, which the groups argue violates GDPR guidelines.
The GDPR allows for fines of up to 4 percent of annual revenue for serious infractions, and the consumer organizations assert that Meta’s “pay-or-consent” choice falls into this category.
Criticism from Consumer Groups
Ursula Pachl, deputy director general of the EU-wide consumer group BEUC, criticized Meta’s approach as an attempt to legalize its business model by monetizing sensitive user data through invasive advertising practices.
The complaints highlight concerns about Meta’s continued collection and monetization of personal information without clear user consent.
Response from Meta
Meta has defended its actions, pointing to an EU court ruling and stating that offering ad-free alternatives is in line with regulatory requirements.
The company maintains that providing users with the option to pay for an ad-free experience balances the demands of European regulators while preserving user choice.
Regulatory Scrutiny and Future Implications
The complaints add pressure on data regulators to act swiftly, especially as new EU rules set to take effect in March will grant watchdogs broader powers and impose stricter limits on data processing for advertising purposes.
The Irish Data Protection Commission, as Meta’s lead authority in the EU, is currently assessing the situation, while the EU panel of data protection watchdogs is working on guidelines regarding valid consent in the context of consent or pay models implemented by large online platforms.