Meta under fire in the EU: how the company extorts money from users for privacy

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The company's "pay or accept" policy has sparked numerous disputes with human rights activists.

In the European Union, a legal battle is raging against the Meta corporation. Consumer protection groups are filing class-action lawsuits seeking to use the Data Protection Act to stop a practice in which users are faced with the choice of either consenting to the processing of their data for advertising purposes, or paying for a subscription to disable advertising.

From the end of 2023, Meta began implementing changes in the EU, offering users to "continue using Facebook and Instagram with ads" or switch to a paid subscription without ads. This step was taken in an attempt to comply with EU legislation, but caused dissatisfaction with privacy rights defenders.

For example, the organization NOYB (None Of Your Business) claims that Meta offers to pay for the enjoyment of fundamental rights under EU law, and challenges this practice from November 2023, arguing that consent to data processing should be provided free of charge, and not as an alternative to payment. In January of this year, NOYB also filed a lawsuit in which it objected to the inability of users to "freely" withdraw the consent to data processing that they had already given to Facebook or Instagram.

The complaints filed by members of the European Consumer Organization (BEUC) are based on the General Data Protection Regulation (GDPR) and claim that the "pay or accept" model violates data protection principles, including limitation of purposes, data minimization, fair processing and transparency. Human rights activists claim that Meta has no legal grounds for processing data for advertising purposes, since such an action is based on consent.

Meta disputes the charges, saying it takes its regulatory obligations seriously and is confident that its actions comply with the GDPR. The company claims that its ad-free subscription model complies with the latest regulatory developments and decisions of the highest European courts.

Lawsuits against Meta are becoming more frequent as the company faces difficulties under EU law. Last year, the company was fined a record €1.2 billion. for transferring data from EU residents to the US, which violates the GDPR.

Despite the legal battles, Meta's financial health isn't suffering: the company announced its first quarterly dividend payment, earning $131.9 billion out of $134.9 billion in 2023. ad revenue.
 
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