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Meta's Pay for Privacy Model Is Illegal, Says EU

Jul 2, 2024
EU officials label Meta's pay-for-privacy model as illegal, requiring a middle ground option for users to opt out of targeted advertising. Meta faces potential fines if they fail to reach an agreement with regulators by March 2025.
03:57

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Quick takeaways

  • EU deems Meta's pay-for-privacy model illegal under the Digital Markets Act.
  • European Commission emphasizes user consent and fair competition in tech enterprises.

Deep dives

Concerns over Meta's Pay-for-Privacy Model in the EU

The European Commission rejected Meta's pay-or-consent subscription model under the Digital Markets Act, deeming it illegal. Despite Meta's defense that the model aligns with the Court of Justice of the European Union's decision, the EU contends that the pay-or-consent approach violates user data rights. The issue revolves around the competitive edge Meta gains by amalgamating data from platforms like Instagram and its advertising arm. If no resolution is reached by March 2025, Brussels reserves the right to impose fines up to 10% of Meta's global turnover.

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