EU tells Meta to address consumer fears over 'pay for privacy'

Core Points - Meta is facing scrutiny from EU consumer authorities regarding its "pay or consent" model, which requires users to either pay to avoid data collection or consent to share their data to use Facebook and Instagram for free [1][2] - European consumer groups have filed complaints against Meta's model, claiming it could be considered unfair and contrary to consumer protection laws [1][2] - Meta has until September 1 to respond to the concerns raised by the EU authorities and propose solutions [2] Group 1 - The EU regulators coordinated with the consumer protection authorities to address concerns that Meta's model misleads or confuses consumers [2] - If Meta fails to address the concerns, enforcement measures, including sanctions, may be imposed [2] - The European Consumer Organisation has welcomed the actions against Meta and urged the company to revise its pay-or-consent choice screen to ensure fair consumer choices [4] Group 2 - A Meta spokesperson defended the model, asserting that it complies with European regulations and aligns with established subscription business models [3][4] - The company has previously delayed the release of its generative AI models and its Twitter alternative, Threads, in the EU due to regulatory uncertainties [4][5] - The ongoing conflict between Meta and the EU highlights the challenges tech companies face in adapting to stricter regulations in Europe [4]