The European Network of Consumer Protection Authorities wrote to Meta, the parent company of Facebook and Instagram, on Monday to demand explanations about its “pay or consent” model, which it suspects of misleading Internet users. But what is this paid subscription? 20 minutes make the point.
What is the “pay or consent” model?
Since November, Meta has been offering European Facebook and Instagram users the choice between continuing to use these platforms for free by agreeing to provide their personal data for targeted advertising purposes, or paying a subscription to no longer see ads. This formula was presented by Mark Zuckerberg’s group as a way to comply with European rules on the processing of personal data, which have already earned it several convictions and fines.
What does the European Commission bring to Meta?
“Consumer protection authorities have assessed several elements that could constitute misleading or aggressive practices, in particular the question of whether Meta provided consumers with accurate, clear and sufficient information from the outset” (about its subscription), the European Commission explained in a press release on Monday. “This could infringe European consumer protection law,” it added.
The Commission, which is demanding clarification, stresses that it is coordinating this action by the network of national consumer protection authorities (CPC), broadening the scope of an investigation carried out in France by the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF).
But in addition to the issue of the alleged violation of the provisions of the General Data Protection Regulation (GDPR) – which is the subject of a separate procedure in Brussels – Meta is now also suspected of infringing consumer rights with its commercial practices. The Commission refers to two European directives, one on unfair commercial practices, the other on unfair terms in contracts.
So why isn’t it “free”?
Among the grievances retained are in fact cited “the fact of misleading consumers by using the term ‘free'”, whereas the refusal of the paid subscription amounts to accepting that Meta derives revenue from the use of their personal data for targeted advertising, or “the fact of suggesting that consumers who decide to pay will not see any advertising”.
And what’s next?
Meta has until September 1 to respond to the concerns expressed in this letter and “propose solutions”, failing which the American giant is exposed to possible sanctions.
What does Meta say?
A Meta spokesman on Monday denied any practice that would be contrary to the law. “Subscriptions as an alternative to advertising are a well-established business model in many sectors,” he said, also assuring that this type of subscription was in line with the case law of the Court of Justice of the EU.