Meta Platforms Inc. Faces Complaints in Europe for Allegedly Violating Data Privacy Laws

Meta Platforms Inc. is facing a wave of complaints in Europe for allegedly failing to obtain proper consent before collecting extensive data about Facebook and Instagram users in order to target the ads they see. Eight consumer organizations are set to file complaints with national data watchdogs, accusing Meta of offering a “smokescreen” by providing users the option of using ad-free versions of their social media services for a fee.

The groups argue 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 EU-wide consumer group BEUC, criticized Meta’s “unfair ‘pay-or-consent’ choice” as an attempt to legitimize its business model by collecting sensitive information about users’ lives for monetization through invasive advertising.

In response to mounting pressure and a Europe-wide ban on using user data to target ads without consent, Meta began offering ad-free versions of Facebook and Instagram in exchange for a monthly fee last November. The company cited an EU court ruling from last year that businesses should provide alternatives for customers who do not want their data collected and sold to advertisers, even if it means paying a fee.

Meta defended its decision, stating that the option for users to purchase a subscription for an ad-free experience strikes a balance between regulatory requirements and user choice. However, the consumer complaints are expected to increase pressure on data regulators to make a swift decision. New EU rules coming into effect on March 7 will expand the powers of watchdogs and impose further restrictions on platforms processing personal data for advertising purposes.

The Irish Data Protection Commission, as the lead authority for Meta in the EU, is currently evaluating the company’s plan. The EU panel of data protection watchdogs, known as EDPB, is also working on an opinion regarding the requirements for valid consent in the context of consent or pay models implemented by large online platforms. This opinion will be binding on national data watchdogs and provide clarity on what is permissible for tech firms in terms of data collection and advertising practices.