Consumer groups across EU nations unleash wave of complaints against Meta's 'Pay or Consent' system

Consumer advocacy groups from eight European Union countries filed formal complaints on Thursday against Meta, the parent company of Facebook and Instagram. Accusations include the illegal processing of user data and utilizing the controversial “pay or consent” system as a mere smokescreen for widespread privacy breaches.

Meta, known for its lucrative data-selling practices to advertisers, finds itself entangled in a battle with EU regulators over data privacy concerns. The recently introduced “pay or consent” system, allowing users to withhold their data for ad targeting in exchange for a monthly fee, is already facing challenges from privacy and consumer advocates.

The European Consumer Organisation (BEUC) labeled Meta’s system as “a smokescreen to obscure the real problem of massive, illegal data processing of users which goes on regardless of what users choose.” Meta, however, dismissed these accusations as “general and unfounded.”

Consumer groups from the Czech Republic, Denmark, France, Greece, the Netherlands, Norway, Slovenia, and Spain are jointly filing complaints with their respective local data protection authorities, as confirmed by the Brussels-based BEUC umbrella body.

BEUC’s report alleges that Meta’s practices violate the European Union’s stringent General Data Protection Regulation (GDPR), which has been at the core of previous legal battles against the tech giant. Ursula Pachl, BEUC deputy director general, emphasized, “It’s time for data protection authorities to stop Meta’s unfair data processing and its infringing on people’s fundamental rights.”

The report contends that Meta is violating GDPR principles that demand transparency and restrictions on user data processing. It accuses Meta of justifying the collection of extensive user data on activities, location, personalities, behavior, attitudes, and emotions for commercial gain.

Under the GDPR law, consent must be freely given, and BEUC argues that Meta’s model coerces consumers into accepting data processing. The report states, “Under these circumstances, the choice about how consumers want their data to be processed becomes meaningless and is therefore not free.”

This marks the third formal complaint against Meta’s “pay or consent” scheme, following a joint complaint by BEUC and its members in November and a previous complaint by privacy group NOYB.

As the EU’s data watchdog, the EDPB, is set to decide on the legality of Meta’s fee system in the coming weeks, the battle between the EU and Meta continues in what seems to be a high-stakes cat-and-mouse game.