A PYMNTS Company

Meta Faces Fresh Allegations of EU Law Breaches in Subscription Service Rollout

By  |  January 23, 2025
Meta Faces Fresh Allegations of EU Law Breaches in Subscription Service Rollout

Meta Platforms, the parent company of Facebook and Instagram, is under renewed scrutiny for its no-ads subscription service, with allegations that it may still violate European Union (EU) consumer and privacy laws. The European Consumer Organization (BEUC) has called on regulators to take decisive action against the U.S. tech giant, according to Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Meta initially launched the subscription-based service in 2023, allowing users in Europe to opt for less personalized advertising. Last year, the company introduced changes, including a 40% reduction in subscription fees. However, BEUC described these adjustments as superficial and claimed they fail to resolve fundamental legal concerns.

    “In our view, the tech giant fails to address the fundamental issue that Facebook and Instagram users are not being presented with a fair choice,” BEUC Director General Agustin Reyna stated. He argued that Meta is making a “weak bid” to demonstrate compliance with EU law while continuing to push users toward its behavioral advertising model. Reyna emphasized the need for prompt action by consumer and data protection authorities, as well as the European Commission, to safeguard consumer rights.

    Read more: Meta Accused of Using Pirated Books to Train AI, Court Documents Reveal

    A Meta spokesperson pushed back on BEUC’s assertions, maintaining that the November changes were designed to meet EU regulatory demands and exceed the requirements of EU law, per Reuters.

    BEUC has accused Meta of employing misleading practices that pressure users into selecting options favorable to the company. The organization also argued that users cannot freely consent to data processing due to the lack of a truly independent choice. Additionally, BEUC criticized Meta for failing to minimize the amount of data it collects and for allegedly providing a degraded experience for users who decline to share their personal data.

    The dispute adds to Meta’s ongoing challenges in Europe. In July 2024, EU antitrust regulators charged Meta with breaching the Digital Markets Act, citing its subscription model as creating a binary and unfair choice for users.

    Source: Reuters