The Commission considers that the binary decision of Facebook’s parent company that forces citizens to either pay or transfer their data to use the service does not comply with the Digital Markets Law.
According to the Brussels investigation, “this election obliges users to consent to the transfer of their personal data and does not offer them a less personalized but equivalent version of Meta’s social networks.” That is, as sources from the European Commission explain, the Community Executive is concerned that the decision is a real decision.
At the end of last year, and with the aim of complying with the European Digital Services Act (DMA), I aim to start a system through which users could either consent to the use of their personal data and thus receive personalized advertisements or well pay to be able to use the service without giving up your data.
According to Brussels, this violates article 5(2) of the WFD since although large internet companies must require the consent of users, if they refuse to give it “they must have access to a less personalized but equivalent alternative“. European legislation states that technology companies “cannot condition the use of the service or certain functionalities on the consent of the users.”
The Community Executive highlights that the Meta model does not allow users to “opt for a service that uses less personal data” nor does it allow them to “exercise their right to consent freely.” An intermediate model, in which Meta customers who do not give the green light to share their data can enjoy a service without personalized ads, would be Brussels’ preferred option.
According to the main European consumer organization, BEUC, Meta does not offer a free decision. “It has to offer free consent and, above all, it has to provide a service equivalent to what consumers get today if they decide not to give their consent to the cross-combination of their data in the platform’s services,” says its spokesperson. Sébastien Pant. To do this you must change the choice screen that you have imposed.
Meta defends his measure
This scenario could be avoided if the company offered corrective measures to adjust its business model to the provisions of the WFD.
“The ad-free subscription follows the direction of Europe’s highest court and complies with the WFD. We look forward to continuing a constructive dialogue with the European Commission to close this investigation,” said a Meta spokesperson.
The company has offered to reduce the cost of its subscription servicebut “is still waiting for the response from the regulatory authorities,” the spokesperson said.
Personal data is a very valuable asset for digital companies, as it allows them to offer advertisers a tailored path to potential consumers. Meta earns more than 95% of its revenue from advertising.
The European Commission opened the investigation against Meta’s “pay or consent” policy on March 25. If after one year of that date it considers that Meta is not complying, “it may impose fines of up to 10% of the total global business volume.” In case of recidivism, it would rise to 20%.
