EDPB issues opinion on Meta’s “consent or pay” model
The European Data Protection Board (EDPB) has recently released new guidance that has significant implications for major adtech companies like Meta and other large platforms. Since November 2023, the parent company of Facebook and Instagram has been requiring users in the European Union to either agree to being tracked and profiled for targeted advertising, or pay a monthly subscription to access ad-free versions of the platforms. However, the EDPB has raised concerns about this “consent or pay” model, highlighting the potential imbalance of power between individuals and data controllers. The 42-page opinion emphasizes the importance of providing users with a genuine choice over their privacy.
The guidance from the EDPB will influence how privacy regulators interpret the General Data Protection Regulation (GDPR) in a crucial area concerning online platforms. The Board warns against large platforms using a binary choice between consenting to data processing for advertising purposes or paying a fee, as it may not comply with the GDPR’s requirement for valid consent. The opinion specifically targets entities designated as very large online platforms or gatekeepers under EU laws, urging them to offer alternative options that do not involve payment for access to services involving personal data processing for advertising.
Platforms like Meta, regulated under both the Digital Services Act and the Digital Markets Act, are advised to consider providing free alternatives to tracking ads, such as contextual or topic-based advertising that respects user privacy. The EDPB stresses the importance of controllers demonstrating that their data processing practices align with GDPR principles like purpose limitation, data minimization, and fairness. While the guidance allows for some flexibility regarding charging for non-tracking alternatives, the emphasis remains on offering users genuine choices and ensuring that consent is freely given without coercion or pressure.
In light of the EDPB’s detailed opinion, EU data protection regulators are expected to scrutinize large online platforms’ data processing practices more closely. The guidance aims to discourage privacy-hostile practices and encourage platforms to offer less intrusive advertising options. Despite Meta’s claims that its subscription model complies with EU laws, the EDPB’s stance underscores the need for platforms to prioritize user privacy and provide meaningful choices regarding data processing and advertising practices.
