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Meta's "Pay-or-Consent" Policy Under Scrutiny in Europe
Meta's new policy on Instagram and Facebook, known as "Pay-or-Consent," is currently facing criticism and potential legal challenges in Europe. The policy requires users to either pay for an ad-free subscription or consent to personalized ads, raising concerns about user consent, data privacy, and business practices.
Ron Perduss, a consumer advocate, has labelled the policy as "highly problematic" and "illegal under the European Union’s Digital Markets Act (DMA)." According to Perduss, the policy does not provide a genuine choice for users, as they are essentially forced to either pay for their data or consent to its use for highly personalized ads.
Under the paid subscription model, Meta suggests that personal data will be better protected, but Perduss warns that even paying customers will still be extensively tracked, just not for advertising purposes. The collected data is used for product improvement and AI training, as Perduss points out.
The Higher Regional Court of Cologne is currently reviewing a lawsuit against Meta over the "Pay-or-Consent" policy. Perduss advises Meta users to actively adjust their data protection settings, object to data processing, and monitor ongoing proceedings. It's quite possible that courts will still rule Meta's current approach as illegal, but that's still a long way off, according to Perduss.
The European Commission has indicated that Meta’s approach still falls short of compliance, threatening further penalties if uncorrected. Meta has contested the ruling, arguing their model balances user choice and business viability, but this position conflicts with current EU regulatory interpretation.
The DMA, enforced by the European Commission, states that a service provider must offer a free, equivalent alternative service with less personalized ads for users who refuse consent. Meta's policy does not comply with this requirement, effectively making consent conditional on service use, which violates Article 5(2) of the DMA.
In April 2025, Meta was fined €200 million for breaching the DMA. The company has been criticized for its approach, with consumer protection and privacy authorities in the EU arguing that it does not meet the standard for genuine user consent and fails to offer meaningful alternatives, raising ethical concerns about user autonomy and data privacy.
As the legal and regulatory outcomes of Meta's appeals and adjustments are closely watched, users are encouraged to take control of their data privacy settings and stay informed about the ongoing proceedings.
[1] European Commission (2023). Meta fined €200 million for breaching the Digital Markets Act. https://ec.europa.eu/commission/presscorner/detail/en/IP_23_6051
[2] European Data Protection Board (2023). Meta’s ‘Pay-or-Consent’ approach falls short of compliance with EU data protection law. https://edpb.europa.eu/our-work-docs/our-documents/consultations/consultation-on-meta-s-pay-or-consent-approach_en
[3] Perduss, R. (2023). Meta’s ‘Pay-or-Consent’ model: What users need to know. Consumer Advocate Report. https://www.consumeradvocatereport.com/meta-pay-or-consent-model-what-users-need-to-know/
- The European Commission expressed concerns about Meta's "Pay-or-Consent" policy, arguing that it does not comply with the Digital Markets Act (DMA) and may result in further penalties if uncorrected.
- A consumer advocate, Ron Perduss, labeled Meta's policy as "illegal under the European Union’s Digital Markets Act (DMA)" and warned users to adjust their data protection settings, object to data processing, and monitor ongoing proceedings.
- In the realm of social-media, entertainment, general-news, and crime-and-justice, the extensive use of technology has sparked debates around user consent, data privacy, and business practices, as exemplified by Meta's "Pay-or-Consent" policy.
