The European Consumer Organization (BEUC) and its 19 members filed a complaint against Meta for "unfair business practices". The complaint targets Meta’s recently launched ad-free subscription plan for Instagram and Facebook platforms in Europe. According to Meta, the subscription plan is required to comply with the EU's General Data Protection Regulation (GDPR) and the Digital Markets Act, which limit the amount of personal data online services can capture through the ad-supported free version.
Ursula Pachl, deputy director general of BEUC, said: "The choice the tech giant is currently offering consumers is unfair and illegal - the millions of European users of Facebook and Instagram deserve better than this. Meta's approach is unfair, deceptive and radical. The law includes partially blocking consumers from using services, forcing them to make quick decisions and providing misleading and incomplete information in the process, thereby violating EU consumer law. The EU's consumer protection agency must now take action to force the technology giant to stop this practice. The company's practices also raise concerns about GDPR."
The European Consumer Protection Agency claimed that Meta was forcing users to "either consent to the processing of their data for advertising purposes or pay to avoid seeing ads." Meta's approach, which creates a sense of urgency by blocking users from using Facebook and Instagram before they make a choice, is considered an aggressive approach under European consumer law.
The group also said that by opting for a paid subscription, consumers may believe they will get a privacy-friendly option with less tracking and profiling. However, user data will likely still be collected and used for purposes other than advertising on the Meta platform.
Meta's ad-free subscription costs €9.99 per month (web version) or €12.99 per month (for Facebook or Instagram iOS and Android apps). Meta says these prices are in line with subscription prices offered by YouTube, Spotify and Netflix in the region.