Meta given weeks to tell EU consumer protection authorities how it'll fix ‘pay or consent'

Core Viewpoint - Meta is facing scrutiny from the European Union regarding its 'pay or consent' model, which requires users to either accept tracking for targeted ads or pay for an ad-free experience, raising concerns about consumer protection and compliance with EU regulations [1][2][3]. Group 1: Regulatory Concerns - The Consumer Protection Cooperation (CPC) Network has given Meta until September 1, 2024, to address consumer protection concerns related to its 'pay or consent' model [2]. - The European Commission is investigating whether Meta's practices violate the Digital Markets Act (DMA) and the Digital Services Act [1][2]. - The CPC network is concerned that Meta's consent mechanism may involve misleading or aggressive practices, failing to provide consumers with clear and sufficient information [3]. Group 2: Misleading Practices - The CPC highlights that Meta's use of the term "free" may be misleading, as users must consent to data tracking for personalized ads if they do not pay for the ad-free version [4]. - Concerns have been raised about Meta's language, which may confuse users regarding their personal data and the nature of ads they may still see even if they pay [4][5]. - The CPC argues that the navigation process for users to understand their data usage is overly complicated, potentially leading to confusion [5]. Group 3: Consumer Pressure - The CPC has noted that users are under undue pressure to make a quick decision between consenting to tracking or paying, which may not allow them sufficient time to assess the implications [3][6]. - The introduction of the 'pay or consent' model has left long-time free users unable to access their accounts until they make a choice, raising further concerns about consumer rights [5][6]. Group 4: Potential Consequences - If Meta fails to address the concerns raised by the CPC, national consumer protection authorities in EU member states could impose penalties of up to 4% of Meta's global annual turnover [8]. - The coordinated action by the CPC network indicates a serious regulatory challenge for Meta, which may lead to significant financial implications if enforcement actions are pursued [8].