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Dutch Competition Regulator Confronts Meta Over ‘Free’ Subscriptions

By  |  July 22, 2024

The Netherlands Authority for Consumers and Markets (ACM), alongside other European consumer regulators, has taken a stand against Meta, accusing the American tech giant of misleading practices regarding its Facebook and Instagram subscription models.

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    The issue at hand involves the introduction of account options that present users with a choice between a paid or ‘free’ version of the platforms. Regulators argue that the ‘free’ option is not truly free, as it requires consumers to consent to personalized advertisements based on their data. This means that Meta profits from user data, contradicting the notion of a no-cost service.

    Consumer protection authorities have identified several practices at Meta that they believe violate consumer rights. One significant concern is the difficulty consumers face in understanding how their preferences and data are used for advertising purposes. Relevant information is often buried under multiple layers of links on Meta’s apps and websites, making it hard for users to access.

    Related: Meta Fined $220 Million by Nigeria’s Antitrust Agency Over WhatsApp Privacy Policy

    Additionally, there are concerns about the mandatory subscription choice users must make before accessing their accounts. This requirement poses a significant inconvenience, especially considering the central role platforms like Facebook and Instagram play in the social lives of many individuals.

    Meta has been given until September 1 to respond to a letter from the regulators and the European Commission. Should Meta fail to take appropriate measures to address these issues, it could face enforcement actions, including potential fines.

    Source: NL Times