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Compliance Solutions for Websites, Apps and Organizations | iubenda

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Meta's New Approach: Pay for Your Privacy? | iubenda
Jessica Ryder · 2023-10-06 · via Compliance Solutions for Websites, Apps and Organizations | iubenda

Are you ready to pay for your online privacy on Meta’s platforms, which include Facebook and Instagram?

According to the Wall Street Journal, Meta is considering a model where European Union (EU) users might have to pay up if they wish to maintain their privacy rights.

The Proposal

Meta has proposed a “Pay for your Rights” model, suggesting that EU users pay $14 monthly, totaling $168 (€160) annually, to enjoy their fundamental privacy rights. This means if you don’t want Meta to exploit your personal data, you might have to pay up.

What Sparked This Move?

Meta’s decision follows a successful lawsuit by noyb (an activist group focused on data protection). The European Data Protection Board (EDPB) had earlier declared that Meta’s method of bypassing user consent was unlawful. The Court of Justice of the European Union (CJEU) backed this view in case C-252/21 Bundeskartellamt, confirming that Meta’s data usage practices were illegal in the EU from 2018 to 2023.

Max Schrems, an activist with noyb, remarked, “Fundamental rights cannot be for sale. Are we going to pay for the right to vote or the right to free speech next? This would mean that only the rich can enjoy these rights, at a time when many people are struggling to make ends meet. Introducing this idea in the area of your right to data protection is a major shift. We would fight this up and down the courts.”

A Ruling with Six Crucial Words

Interestingly, Meta’s stance might be influenced by just six words in a recent, lengthy CJEU judgement. The statement, tucked away in paragraph 150, suggested an alternative to ads “if necessary for an appropriate fee”. These words, often called an “obiter dictum”, are non-binding remarks in a legal judgement. Despite their non-binding nature, Meta seems to be latching onto this statement to justify their proposed fee.

Schrems added, “The CJEU said that the alternative to ads must be ‘necessary’ and the fee must be ‘appropriate’. I don’t think € 160 a year is what they had in mind.

The Origin of ‘Pay or Okay’

The idea of choosing between paying for privacy or consenting to data processing was first introduced by the Austrian newspaper “Der Standard”.

They proposed a fee of €8.90 monthly (€107 annually) for readers who opted out of data processing for ads. Initially, this approach aimed to help journalism outlets affected by dwindling ad revenues due to big tech dominance.

However, Meta seems keen to adopt this strategy, even though the General Data Protection Regulation (GDPR) doesn’t distinguish between big tech and media companies regarding user consent.

While it remains to be seen how this will pan out, one thing is clear: the debate about online privacy, user rights, and big tech’s responsibilities is heating up. Stay tuned for more developments on this front!