EU threatens to fine Meta for saying Facebook is 'free'
The European Union warns Meta about its "pay or consent" model for Facebook and Instagram, citing potential breaches of consumer protection laws. Meta has until September 1st to propose changes to avoid fines.
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The European Union has warned Meta that its "pay or consent" model for Facebook and Instagram could breach consumer protection laws. The EU's Consumer Protection Cooperation Network criticized the model as misleading and confusing for users. Meta's model offers users the choice to pay a monthly fee or consent to personalized ads based on their data. The EU is concerned about privacy violations and has given Meta until September 1st to propose changes or face potential fines. Regulators claim Meta's language around the ad-free versions of Facebook and Instagram is deceptive, as users still need to consent to data usage for targeted ads. EU Commissioner for Justice, Didier Reynders, emphasized the importance of transparency in how user data is utilized. Meta defends its model, stating it aligns with European regulations and follows the trend of subscription-based services. The EU accuses Meta of violating directives on unfair commercial practices and contract terms, with potential fines reaching up to 4% of the company's annual revenue in the accused EU countries.
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