The EU is now scrutinizing Meta’s ‘pay or be tracked’ consent model

Meta’s contentious “pay or be tracked” choice for users in the European Union has drawn scrutiny from the European Commission. Today, the bloc announced that it has issued a formal request for information (RFI) under the Digital Services Act (DSA) to Meta, the owner of Facebook and Instagram. The request seeks more details on the “Subscription for no Ads options” provided to regional users of these social networks.

The Commission emphasized the need for Meta to furnish additional information on its efforts to comply with obligations related to advertising practices, recommender systems, and risk assessments associated with the introduction of the subscription option.

Meta has been contacted for a response to the Commission’s RFI. However, spokesman Matthew Pollard stated that the company currently has no comment on the matter.

Last fall, Meta made a controversial shift to a “consent or pay” business model in the EU, following legal challenges to two other legal bases it had relied upon for processing users’ data for ad targeting. Under this model, EU users must either pay monthly subscriptions (starting at €9.99/month) for access to ad-free versions of the social networks or agree to being tracked and profiled for targeted advertising.

This approach has sparked criticism from privacy and consumer rights groups, who argue that it violates EU data protection laws requiring informed, specific, and freely given consent. Presently, EU users have no means of accessing Facebook or Instagram for free without being tracked.

Amidst mounting concerns, the EU has intervened with an RFI under the DSA, its recently updated e-commerce regulation, signaling heightened regulatory scrutiny over Meta’s practices.