Meta Faces Complaints in Europe Over Data Collection for Targeted Ads

Meta Platforms Inc. is facing numerous complaints in Europe for allegedly collecting extensive amounts of data about Facebook and Instagram users without obtaining proper consent. These consumer organizations argue that Meta has created a “smokescreen” by offering users the choice of using ad-free versions of their social media services in exchange for payment.

The groups filing the complaints claim that this practice violates the European Union’s General Data Protection Regulation (GDPR) which allows for fines of up to 4% of annual revenue for serious infractions. Ursula Pachl, deputy director general of E.U.-wide consumer group BEUC, stated that Meta’s “unfair ‘pay-or-consent’ choice is the company’s latest effort to legalize its business model.”

Meta began offering ad-free versions of Facebook and Instagram in November, as a response to mounting pressure and a Europe-wide ban on using user data to target them with ads without their consent. The company argued that this change was supported by an E.U. court ruling from last year, which stated that businesses should provide alternatives for customers who do not wish to have their data collected and sold to advertisers, even if it comes at a fee.

The consumer complaints will add pressure on data regulators to make a swift decision. Starting from March 7, new E.U. rules will grant watchdogs broader powers and impose further limitations on platforms processing personal data for advertising purposes, increasing the possibility of more scrutiny from the E.U.

Meta’s plan is currently being assessed by the Irish Data Protection Commission, the lead authority due to Meta’s E.U. base in Dublin. Additionally, the E.U. panel of data protection watchdogs, known as EDPB, is working on an opinion regarding the requirements for valid consent within the context of “consent or pay” models implemented by major online platforms. This opinion will be binding on national data watchdogs, providing greater clarity on what is feasible for tech companies.

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