The Consumer Protection Department (CPC) of the European Commission (EC) has issued a warning to Meta regarding the “Pay or Consent” service model used for platform users in the European Union (EU), which may violate consumer protection laws.
Meta has until September 1, 2024, to propose changes to this service model, or face fines of up to 4% of the company’s revenue in the EU member states.
Meta’s platforms, including Facebook and Instagram in Europe, offer users the option to pay a monthly fee in exchange for ad-free browsing. However, the EU views this approach as unfair to users and in conflict with the Digital Markets Act (DMA).
The CPC has pointed out specific instances where Meta may have violated the law, such as using terms like “free to use” when users must actually agree to share personal data to access the service, or using terms like “your info” instead of “personal data”. Additionally, users who pay for content sharing may still see ads, among other concerns.
Source: European Commission
TLDR: The EU warns Meta about its “Pay or Consent” service model for platform users in Europe, stressing potential violations of consumer protection laws. Meta has until September 1, 2024, to propose changes or face fines.
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