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Europe’s largest consumer group has filed a complaint against Meta Platforms (NASDAQ:META) for the company’s paid no-ads subscription service in the EU, calling it “unfair.”
Last month, the tech giant said it will offer people access to Facebook and Instagram without any ads for a subscription fee in Europe, in an effort to meet regulatory requirements in the EU related to data privacy. Meta had noted that while people are subscribed, their information will not be used for ads.
European Consumer Organisation, or BEUC, said that this is an unfair choice for users, which runs afoul of EU consumer law on several counts and must be stopped.
BEUC added that the organization and 19 of its members are filing a complaint with the network of consumer protection authorities, or CPC, on grounds of Meta allegedly engaging in unfair commercial practices in multiple ways.
BEUC noted that it is also evaluating if Meta is infringing EU’s data protection law, General Data Protection Regulation, or GDPR.
The complaint comes two days after advocacy group NOYB filed a complaint with the Austrian privacy watchdog, noting that Meta’s new service amounted to paying a fee to ensure privacy.
Meta Platforms’ (META) had previously told Seeking Alpha that the company’s pricing is in line with similar subscription offerings in Europe; and the option for people to buy a subscription for no ads balances the requirements of European regulators while giving users choice and allowing the company to continue serving all people in the EU, European Economic Area, or EEA, and Switzerland.
“Meta is breaching EU consumer law by using unfair, deceptive and aggressive practices, including partially blocking consumers from using the services to force them to take a decision quickly, and providing misleading and incomplete information in the process,” said Ursula Pachl, Deputy Director General of BEUC.
The BEUC noted that by many users likely think that by opting for the paid subscription, as it is presented, they get a privacy-friendly option involving less tracking and profiling. However, users are likely to continue to have their personal data collected and used, but for purposes other than ads.
The consumer group also pointed that the “very high subscription fee for ‘ad-free’ services is also a deterrent for consumers.”
As per Meta (META) users can subscribe to the social media sites for €9.99 per month on the web or €12.99 per month on Apple’s (AAPL) iOS and Alphabet’s (GOOG) (GOOGL) Android operating systems. Users can opt for a free, ad-supported service.
Meta had said in its blog post on Oct. 30 that in August, the company showed its intention to move people in the EU, EEA, and Switzerland to the GDPR legal basis of “Consent” for the purpose of processing data collected on its platforms for advertising purposes.
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