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Meta’s No-Ads Subscription Faces New EU Legal Battle


Meta’s revised ad-free subscription model faces fresh scrutiny from EU regulators over potential breaches of consumer and privacy laws.


Meta’s No-Ads Subscription Model Under Fire in Europe

Meta Platforms (NASDAQ: META) is once again in the regulatory spotlight as European consumer watchdogs challenge the legality of its revised no-ads subscription service. Despite adjustments made to comply with EU laws, critics argue that the changes are superficial and fail to provide users with a truly fair choice.
The European Consumer Organisation (BEUC) has urged authorities to take immediate action against the tech giant, citing concerns over consumer rights and data protection. This renewed pressure raises questions about the future of Meta’s business model in one of the world’s most stringent regulatory environments.

A Brief History: Meta’s Paid Service and EU Concerns

In 2023, Meta introduced a paid subscription model for Facebook and Instagram users in Europe, offering an ad-free experience in exchange for a monthly fee. However, regulators and consumer groups quickly raised concerns that this model was coercive, effectively forcing users to choose between paying for privacy or surrendering their data for targeted advertising.
Following a backlash, Meta revised its policy in November 2023, giving European users the option to receive less personalized ads while also reducing subscription fees by 40%. Despite these changes, BEUC argues that Meta’s approach remains fundamentally flawed, as it continues to pressure users into behavioral advertising.

Consumer Watchdogs Call for Regulatory Action

BEUC Director General Agustin Reyna criticized Meta’s latest policy tweaks, calling them mere cosmetic adjustments that fail to address the core issue. According to Reyna, Facebook, and Instagram users are still not being presented with a genuinely fair choice.
“The tech giant is making a weak bid to argue compliance with EU law while continuing to push users towards its behavioral ads system,” Reyna said. He called on consumer protection agencies, data regulators, and the European Commission to swiftly investigate Meta’s policies and, if necessary, implement corrective measures.

Meta’s Defense: Compliance and Policy Adjustments

In response to BEUC’s allegations, a Meta spokesperson defended the company’s approach, stating that its November changes were made in direct response to EU regulatory concerns and even exceeded legal requirements.
“Our latest policy updates meet the demands of EU regulators and go beyond what is mandated by EU law,” the spokesperson said.
Despite these assurances, consumer rights groups remain unconvinced. BEUC argues that Meta’s practices are misleading and that its terms remain unclear, making it difficult for users to give informed consent to data processing. Furthermore, the group claims that Meta does not minimize data collection and degrades the user experience for those who opt out of data sharing.

Digital Markets Act and Antitrust Concerns

Beyond consumer rights issues, Meta is also facing scrutiny under the Digital Markets Act (DMA). In July 2023, EU antitrust regulators charged the company with breaching the DMA, arguing that its ad-free subscription model essentially forces users into a binary choice—pay for privacy or submit to tracking.
The DMA, which aims to curb monopolistic practices by tech giants, requires companies like Meta to offer fairer alternatives that do not exploit users’ data as a default condition for platform access. Meta’s paid subscription model, critics argue, does not meet this standard and may constitute an unfair market practice.

The Broader Implications for Big Tech in the EU

Meta’s ongoing regulatory battle highlights the European Union’s increasingly firm stance on digital consumer rights and privacy. With strict laws such as the General Data Protection Regulation (GDPR) and the Digital Markets Act, the EU continues to position itself as a global leader in tech regulation.
The case against Meta could set a precedent for other tech giants, including Google, Amazon, and Apple, as they navigate EU regulations. If Meta is forced to make further concessions, it could impact how social media platforms operate across Europe, potentially leading to new business models that prioritize consumer choice and data protection.

What’s Next for Meta?

With BEUC ramping up pressure and EU regulators reviewing Meta’s latest policies, the coming months will be crucial for the tech giant. If found in violation of EU laws, Meta could face hefty fines or be required to implement more consumer-friendly alternatives.
As the legal battle unfolds, European users will be watching closely to see whether they will finally receive a fair and transparent choice regarding their data privacy. Meanwhile, other global regulators may take cues from the EU’s actions, influencing the future of digital advertising policies worldwide.
Meta’s struggle with EU regulators underscores the growing tensions between big tech and consumer protection groups. As digital privacy concerns mount, companies operating in Europe must navigate an increasingly complex regulatory landscape. Whether Meta will successfully defend its policies or be forced into further concessions remains to be seen. One thing is certain—this case will have lasting implications for data privacy, user rights, and the future of online advertising.

Source:  (Reuters)

 

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