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Analysis News Spotlights Technology

Meta’s new ad-free payment service could violate EU regulations

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Meta Platforms’ revised ad-free subscription service could still breach EU consumer and privacy laws as well as antitrust rules, the European Consumer Organisation (BEUC) said on Thursday, urging regulators to act against the U.S. tech giant.

Meta, which launched the paid service for Facebook and Instagram in 2023, later offered European users the option of receiving less personalized ads and a 40% cut in fees last year.

BEUC, which reported the payment service to consumer protection authorities in 2023, said the changes made last year were cosmetic.

“In our view, the tech giant is failing to address the fundamental issue that Facebook and Instagram users are not being offered a fair choice and is making a feeble attempt to argue that it is complying with EU law while continuing to push users towards its behavioural advertising system,” said BEUC CEO Agustín Reyna.

“It is important that data protection and consumer authorities and the European Commission promptly investigate Meta’s latest policy and, if necessary, take immediate and effective measures to protect consumers,” he added.

A Meta spokesman disagreed with BEUC’s findings, saying the November changes meet the demands of EU regulators and go beyond what is required by EU law.

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

The consumer protection association also claims that it is not possible for users to freely consent to the processing of their data and that Meta does not minimise the data it collects from users.

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

EU antitrust regulators accused Meta in July last year of breaching the Digital Markets Act, alleging that its ad-free payment service constituted a binary choice for users.

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