Europe threatens to fine Meta if it doesn’t change its business model

The European Commission continues its fight against Meta’s questionable practices regarding the use of user data. Specifically, the Zuckerberg conglomerate has been notified that its “pay or consent” model, used by both Facebook and Instagram, could violate consumer protection laws.

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The CPC (Consumer Protection Cooperation Network) warns that Meta has until September 1, 2024, to make changes to the business model used by Instagram and Facebook. According to the CPC, this model is “deceptive” and “confusing,” and if nothing changes, Meta could face substantial fines.

The changes that Meta introduced in its most famous social networks have not been well-received in Europe. Since November, Meta has given users the option to pay €12.99 per month to enjoy Instagram and Facebook without ads. To use them for free, users were “obliged” to allow Meta to collect their personal data in order to display personalized ads.

The CPC regulators have initiated an investigation after receiving multiple complaints from consumer advocacy organizations. According to them, the company does not clearly explain how the free and paid versions of Facebook and Instagram work. As detailed by The Verge, the CPC points out that, although users can opt for an ad-free version by paying, the platform still requires them to consent to the use of their data to create personalized ads.

To make matters worse, the CPC also accuses Meta of not complying with the Directive on Unfair Commercial Practices, as well as the Directive on Unfair Contract Terms. In this case, fines could reach up to 4% of Meta’s annual revenue within the affected EU countries.

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