Meta Faces Scrutiny Over Subscription Model: Allegations of GDPR Violations and Privacy Breaches

How does Meta violate EU laws?

Consumer groups from the Czech Republic, Denmark, France, Greece, Norway, Slovakia, Slovenia, and Spain are accusing Meta of violating the General Data Protection Regulation (GDPR) rules on fair processing, data minimization, and purpose limitation. They argue that Meta's "pay or consent" system is a smokescreen for privacy breaches, coercing users into accepting data processing for a monthly fee.

The groups emphasize that Meta's business model, centered around selling user data to advertisers, disregards GDPR principles of transparency and limits on data processing. Meta's subscription model, charging EUR 9.99/month on the web or EUR 12.99/month on mobile, is seen by critics as forcing users to pay for their privacy.

What is Meta's defense?

Meta defends its subscription changes as a response to regulatory actions and court rulings, citing the endorsement of the subscriptions model by the Court of Justice of the European Union (CJEU) in July. The tech giant claims its model aligns with the direction given by European regulators and courts, emphasizing that it provides users with a choice to consent to data processing for personalized advertising.

The company dismisses allegations of illegal data processing and privacy breaches as "general and unfounded accusations." Meta argues that its ad-free subscription option balances the requirements of European regulators while offering users choice and maintaining its ability to serve all people in Europe.

Sword of Damocles:

This latest development adds to the ongoing clash between the EU and Meta. The European Consumer Organization (BEUC) and other consumer groups have filed complaints with local data protection authorities, urging them to take action against Meta's alleged GDPR violations. The European Data Protection Board (EDPB) is set to decide in the coming weeks whether Meta's fee system violates the bloc's data privacy laws.

As Meta faces increasing pressure, the consumer complaints will likely influence data regulators' decisions. With new EU rules coming into effect on March 7, expanding the powers of watchdogs and imposing stricter limits on data processing for advertising purposes, Meta's subscription model may face even greater scrutiny.

In the midst of these challenges, Meta maintains its position that the subscription model aligns with legal standards and regulatory expectations, setting the stage for a pivotal moment in the ongoing debate between tech giants and EU data protection authorities.