IAB Submits Feedback on EDPB’s Consent or Pay Guidelines
On January 16, 2025, IAB Europe and several associated organizations submitted a feedback paper to the European Data Protection Board (EDPB). This document outlines key concerns following the EDPB’s stakeholder event regarding the draft Guidelines on “Consent or Pay” (CorP) models, which took place on November 18, 2024. The trade associations emphasize the necessity for a cohesive European strategy that aligns with existing legal frameworks such as the General Data Protection Regulation (GDPR) and the rulings of the Court of Justice of the European Union (CJEU).
The feedback paper highlights the importance of assessing “freely given consent” in the context of CorP models. These models provide users with clear choices: either pay a fee for access to an online service or consent to the processing of personal data for personalized advertising in exchange for free access. Users retain the freedom to opt for neither option and can seek alternative services. This autonomy is crucial, as it empowers users to make informed decisions regarding their data and service access.
Moreover, the paper points out that businesses are not obligated to offer their services for free, nor are they required to operate at a loss if a third, free alternative without personalized advertising is mandated. Personalized advertising is a vital revenue source for many online services, and the potential shift to contextual advertising could significantly reduce revenues, making it challenging for businesses to maintain free or lower-priced access options. This change could ultimately harm users by limiting their access to online services.
The trade associations urge the EDPB to adopt a balanced and evidence-based approach to CorP models. Recognizing the economic implications of the EDPB’s evaluation is essential, and any guidance should be founded on empirical research and consultations with relevant authorities, including competition and consumer protection agencies.
