Meta’s Ad-Free Paid Service Sparks Legal Challenge in Europe

Discover the controversy surrounding Meta's ad-free service in Europe as it faces legal challenges under EU consumer laws.

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Meta’s introduction of its paid ad-free service in Europe has stirred controversy within a month of its launch, facing scrutiny for potential violations of the European Union’s (EU) consumer laws. The European Consumer Organisation (BEUC) lodged a collective complaint involving 18 members to the Consumer Protection Authorities (CPC), alleging the service breaches established regulations.

This conflict arises shortly after Austria’s privacy watchdog, NOYB, criticized Meta’s paid service, contending that it essentially amounts to charging users for privacy.

In defense, Meta asserts that its ad-free offering aligns with the EU’s privacy regulations, which mandate companies to grant users the choice of data collection for targeted advertising.

Ursula Pachl, Deputy Director General at BEUC, condemned Meta’s practices, citing them as violations of EU consumer law due to manipulative tactics, rushed decision-making processes, and the dissemination of misleading information, ultimately restricting consumer choice.

The looming question remains: will Meta reconsider offering its ad-free service at no cost?

Meta has yet to disclose its immediate strategy for the EU market. BEUC raises concerns about potential ongoing data collection, even for users opting into the new service. Additionally, regulators spotlight the steep subscription fees for the ad-free service, priced at 9.99 euros ($10.96) monthly for web users and 12.99 euros ($14.25) for iOS and Android users. Meta defends these prices, aligning them with premium services of platforms like YouTube, Netflix, and Spotify.

Pachl further emphasizes that such pricing strategies compel consumers to consent to Meta’s tracking and profiling, undermining the essence of privacy protection without financial barriers.