Meta In The Hotseat As EU Watchdogs Express Concern Over Ad-Free Subscription Model

Tech giant Meta is facing great scrutiny from watchdogs located in the EU.

The news comes after the rollout of ad-free subscriptions took center stage in 2023 but EU regulators feel the thought of the ‘pay or ok’ initiative is just worrisome and they’re making sure Meta knows how they feel about this.

In the recently published joint letter, several watchdogs from that part of the globe had people talking more on this front and speaking against the model for ad-free subscriptions.

The leading concern is that there is a $14 monthly fee attached which Meta would take to ensure user data was secure and privacy was maintained at all times. The firms who are expressing concern include those hailing from Norway, Germany, and the Netherlands.

There were plenty of concerned parties who felt Meta’s Pay or Okay policy might be too expensive and therefore they would find it hard to say no to the option that allows them to reject the offer.

The document similarly goes on to point out how news publishers have little income as a major share of profits stays with the advertisers themselves.

Given the results of this pay or okay policy, we’ve seen how it’s not too popular with experts either. Many companies also feel that the button for acceptance automatically is deemed to be illegal. But the thought of charging a fee for rejection of the option isn’t.

There is also a great mention of how results from this pay or okay front are even greater in regards to consent as close to 100% failed in seeing how charging thousands of euros for clicking the rejection button is legal when compared to the option for rejection.

Paying out a fee also means families are speaking close to $38,000 each year if 35 applications on their devices follow this pay-or-okay model for business strategy.

The subscriptions in place for no ads address matters like the latest in terms of regulatory developments and guidance as well as judgments shared by top-of-the-line regulators in the EU and the courts over the years.

Meta does not agree and says its goals are in line with the laws arising in the EU and also with the stringent Digital Markets Act but 28 top companies feel it robs users of real or free-of-choice decisions of how data is utilized.

Image: DIW

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