EU Threatens Meta with Fines Over "Pay or Consent" Privacy Model

Europe threatens to fine Meta if it doesn't change its business model - Softonic

Meta has also decided to exclude Europe from the launch of Llama, its generative AI model The European Commission continues its fight against Meta's questionable practices regarding the use of user data. Specifically, the Zuckerberg conglomerate has been notified that its "pay or consent" model, used by both Facebook and Instagram, could violate consumer protection laws. The CPC (Consumer Protection Cooperation Network) warns that Meta has until September 1, 2024, to make changes to the business model used by Instagram and Facebook. According to the CPC, this model is "deceptive" and "confusing," and if nothing changes, Meta could face substantial fines. The changes that Meta introduced in its most famous social networks have not been well-received in Europe. Since November, Meta has given users the option to pay €12.99 per month to enjoy Instagram and Facebook without ads. To use them for free, users were "obliged" to allow Meta to collect their personal data in order to display personalized ads. The CPC regulators have initiated an investigation after receiving multiple complaints from consumer advocacy organizations. According to them, the company does not clearly explain how the free and paid versions of Facebook and Instagram work. As detailed by The Verge, the CPC points out that, although users can opt for an ad-free version by paying, the platform still requires them to consent to the use of their data to create personalized ads. To make matters worse, the CPC also accuses Meta of not complying with the Directive on Unfair Commercial Practices, as well as the Directive on Unfair Contract Terms. In this case, fines could reach up to 4% of Meta's annual revenue within the affected EU countries.

Meta Says Facebook Is 'Free' -- EU Threatens To Fine Mark Zuckerberg-Led Social Media Giant - Meta Platforms (NASDAQ:META)

The EU has put Meta Platforms Inc. META on notice over its "pay or consent" model for Facebook and Instagram, citing potential violations of consumer protection laws. What Happened: The EU's Consumer Protection Cooperation or CPC Network has given Meta until Sept. 1, 2024, to propose changes to its "pay or consent" model, according to a blog post on Tuesday. The EU has labeled the model as "misleading" and "confusing" for users, and non-compliance could lead to fines. "Consumer protection authorities assessed several elements that could constitute misleading or aggressive practices, in particular, whether Meta provided consumers upfront with true, clear, and sufficient information," the union stated. See Also: Elon Musk's xAI Flips The Switch On 100K Nvidia H100 GPUs Worth Up To $4B In Memphis Supercluster: 'Most Powerful AI Training Cluster In The World' Meta's "pay or consent" model, rolled out last year, presents users with two choices: pay up to €12.99 (approximately $14.13) per month for ad-free usage of Facebook and Instagram or agree to the collection and use of personal data for personalized ads. The CPC initiated its investigation in response to complaints from consumer watchdog groups. These groups alleged that Meta employs confusing language to describe the paid and "free" versions of its platforms. Meta did not immediately respond to Benzinga's request for comments. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: This development follows Meta's decision to reduce the subscription fee for its ad-free Facebook and Instagram services in Europe to €5.99 ($6.5) from the initial €9.99 ($10.9). This move was aimed at addressing growing concerns of privacy and antitrust regulators. Last month, Meta faced a complaint in Norway for using user images and posts from Facebook and Instagram to train AI models. The Norwegian Consumer Council argued that the opt-out process violates strict EU data protection laws and that Meta uses deceptive design patterns and vague language to make opting out difficult. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple Skips TSMC's 2nm Chip For iPhone 17, Unveils First iOS 18 Public Beta And More: This Week In Appleverse Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs

EU Tells Meta To Address Consumer Fears Over 'Pay For Privacy'

EU consumer authorities told Facebook owner Meta on Monday to take action to assuage European consumer groups' fears over its new "pay or consent" model or face further action. Launched late last year, Meta's system means users have to pay to avoid data collection, or agree to share their private data with Facebook and Instagram to keep using the platforms for free. European consumer groups including in France and Spain filed complaints to the network of consumer protection authorities (CPC) over the pay-for-privacy model. Now national consumer protection authorities in Europe have sent a letter to Meta, warning the model's roll-out "could potentially be considered unfair and contrary". There are concerns Meta misled or confused consumers with its language, different screens and other practices as it rolled out the new scheme. Meta has until September 1 to reply to the letter and to offer solutions. EU regulators in the European Commission coordinated the action with the CPC network. "If Meta does not take the necessary steps to solve the concerns raised, CPC authorities can decide to take enforcement measures, including sanctions," the commission said in a statement. Meta faced fierce scrutiny over the model amid concerns over users' privacy. Earlier this month, EU regulators accused Meta of violating the bloc's new competition rules with the model that Brussels said forced a "binary choice" on users. If the breach is confirmed, it could mean hefty fines for the US giant. A Meta spokesperson defended the model, insisting it adheres to the rules. "Subscriptions as an alternative to advertising are a well-established business model across many industries," the spokesperson said. "Subscription for no ads follows the direction of the highest court in Europe and we are confident it complies with European regulation." The European Consumer Organisation welcomed the latest move against Meta's initiative. Agustin Reyna, director general of the umbrella group for European consumer groups, urged Meta "to change its pay-or-consent choice screen as soon as possible and in a way that provides consumers with a fair and freely-given choice". Meta and the EU are at loggerheads over the bloc's tougher rules. The company last week said it would delay the release of its most powerful generative AI models in Europe because of what it called unpredictable EU regulation. Last year Meta delayed the release of its Twitter alternative Threads by several months in the EU.

EU tells Meta to address consumer fears over 'pay for privacy'

Brussels (Belgium) (AFP) - EU consumer authorities told Facebook owner Meta on Monday to take action to assuage European consumer groups' fears over its new "pay or consent" model or face further action. Launched late last year, Meta's system means users have to pay to avoid data collection, or agree to share their private data with Facebook and Instagram to keep using the platforms for free. European consumer groups including in France and Spain filed complaints to the network of consumer protection authorities (CPC) over the pay-for-privacy model. Now national consumer protection authorities in Europe have sent a letter to Meta, warning the model's roll-out "could potentially be considered unfair and contrary". There are concerns Meta misled or confused consumers with its language, different screens and other practices as it rolled out the new scheme. Meta has until September 1 to reply to the letter and to offer solutions. EU regulators in the European Commission coordinated the action with the CPC network. "If Meta does not take the necessary steps to solve the concerns raised, CPC authorities can decide to take enforcement measures, including sanctions," the commission said in a statement. Meta faced fierce scrutiny over the model amid concerns over users' privacy. Earlier this month, EU regulators accused Meta of violating the bloc's new competition rules with the model that Brussels said forced a "binary choice" on users. If the breach is confirmed, it could mean hefty fines for the US giant. A Meta spokesperson defended the model, insisting it adheres to the rules. "Subscriptions as an alternative to advertising are a well-established business model across many industries," the spokesperson said. "Subscription for no ads follows the direction of the highest court in Europe and we are confident it complies with European regulation." The European Consumer Organisation welcomed the latest move against Meta's initiative. Agustin Reyna, director general of the umbrella group for European consumer groups, urged Meta "to change its pay-or-consent choice screen as soon as possible and in a way that provides consumers with a fair and freely-given choice". Meta and the EU are at loggerheads over the bloc's tougher rules. The company last week said it would delay the release of its most powerful generative AI models in Europe because of what it called unpredictable EU regulation. Last year Meta delayed the release of its Twitter alternative Threads by several months in the EU.

Why EU wants Facebook-parent Meta to change this privacy policy - Times of India

Facebook owner Meta is facing pressure from consumer authorities of the European Union (EU) over its controversial "pay or consent" data collection model. According to a report by the news agency AFP, the network of European consumer protection authorities (CPC) has sent a formal letter to Meta, expressing concerns that the model could be unfair and misleading to consumers. What the EU said in the letter The letter, coordinated by the European Commission, warns that Meta has until September 1 to address the issues raised or face potential enforcement actions, including fines. Consumer groups have accused Meta of using confusing language and tactics to coerce users into accepting data collection. The company's insistence on a "binary choice" between paying for privacy or sharing data has raised eyebrows among regulators. What Meta has to say about its policy Meta has defended the model, arguing that it aligns with European regulations and offers users a choice. However, the company has faced criticism from various quarters, including the European Union's competition authorities, which have accused Meta of violating competition rules with the model. The latest development highlights the ongoing tensions between Meta and the EU over data privacy and competition issues. The company's decision to delay the release of its most powerful generative AI models in Europe due to regulatory uncertainties further underscores the challenges it faces in the region. Consumer advocates have welcomed the action against Meta, urging the company to revise its pay-or-consent model to provide users with a genuine choice. As the standoff between Meta and EU regulators intensifies, the outcome of this case could have far-reaching implications for the tech industry and data privacy rights across Europe. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.