Meta (NASDAQ:META)’s attempt to introduce a subscription-based, ad-free experience for Facebook and Instagram users in Europe continues to face criticism from consumer advocates. The updated subscription model, which offers users in the EU, EEA, and Switzerland the choice between free access with personalized ads or a paid ad-free experience, has drawn allegations of non-compliance with EU privacy and competition laws. This ongoing issue reflects the challenges tech companies face in adapting their business models to meet evolving regulatory standards in the region.
Are Meta’s Changes Sufficient to Meet EU Standards?
In November 2024, Meta reduced the price of its subscription to €5.99 per month for web users and €7.99 per month for mobile users. Additionally, the company introduced an option with less personalized ads. However, the European Consumer Organisation (BEUC) has labeled these updates as superficial, stating that Meta’s approach still forces users into a “pay-or-consent” choice. The BEUC accused Meta of downgrading the quality of service for those who opt out of data-sharing for personalized advertising.
Does Meta Prioritize Compliance or Behavioral Ads?
The BEUC has urged regulators to investigate Meta’s revised policies, expressing concerns that users are not being presented with a fair choice. BEUC Director General Agustin Reyna criticized Meta’s approach, stating,
“The tech giant fails to address the fundamental issue that Facebook and Instagram users are not being presented with a fair choice and is making a weak bid to argue it is complying with EU law while still pushing users towards its behavioral ads system.”
Meta defended its actions, asserting that its changes exceed EU legal requirements and reflect its commitment to regulatory compliance. The company emphasized in a blog post,
“This is the second time in a year we have made significant changes to our business model in the EU to address regulatory feedback.”
Meta’s struggles with regulatory authorities in other regions, such as its temporary relief in India over data-sharing restrictions, underscore its broader challenges with global data privacy standards. In India, the company has faced regulatory pushback over WhatsApp data-sharing practices, a separate but related issue tied to user privacy and corporate data usage.
Earlier controversies surrounding the same service model highlighted similar concerns. When Meta first introduced its ad-free subscription service in 2023, European regulators flagged it for violating the Digital Markets Act. Despite these earlier warnings, regulators and consumer advocates argue that the company’s revised policies remain insufficient to address compliance requirements, raising questions about its ability to adapt to the stringent EU legal framework.
The broader implications of Meta’s legal and regulatory challenges highlight the difficulties tech companies face in aligning their business practices with diverse global requirements. For EU users, the conflict raises fundamental questions about the balance between user privacy, service quality, and corporate profitability. Companies operating in the digital space may need to invest more heavily in creating transparent and compliant business models to navigate these complex regulatory landscapes effectively.
