EU challenges Meta about its pay or consent model in Europe

In late 2023, Meta stated that users of Facebook and Instagram in the European Union could choose between a subscription plan without ads or continuing to use them for free with adverts and agreement to utilize their personal information. Today, the EU's Consumer Protection Cooperation (CPC) Network sent Meta a letter requesting that they react with possible adjustments to this "pay or content" strategy on the grounds that they may violate EU consumer regulations.

According to a press release on the European Commission website, the CPC accused Meta of misleading EU users by using the term "free" for one of its Facebook/Instagram plans, while also requiring users to accept Meta's revenue from personalized ads.

It also alleged that Meta was "confusing users" by forcing them to navigate through multiple screens in the Facebook and Instagram apps, or via links in the online version, to access numerous privacy and Terms of Service pages.

The CPC has given Meta until September 1 to respond to its letter, which should include any revisions to its current intentions that will no longer violate EU consumer legislation. If Meta does not react to the letter by that date, the CPU states that it may "decide to take enforcement measures, including sanctions."

Earlier in July, the European Commission said that it had reached a preliminary conclusion on Meta's "pay or consent" business model for the EU. The EC believes Meta was in violation of the EU's Digital Markets Act. The EC intends to officially complete its inquiry by March 25, 2025. If it is officially determined that Meta breached the DMA, the firm might face fines of up to 10% of its total global revenue.