Meta's Ad-Free Subscription Model under Scrutiny as EU Imposes Data Processing Ban for Personalized Ads

Meta Faces Potential Legal Challenges Over €9.99/Month Ad-Free Facebook and Instagram Subscriptions as Critics Question Their Validity Under GDPR Rules

Meta's recently introduced ad-free Facebook and Instagram subscriptions for the European market at €9.99/month is being questioned as a bait to get consent for personalized ads, as most users wouldn't want to pay for premium access. The subscriptions come as the company faces growing scrutiny over personal data processing for advertising in the region.
European officials have instructed Ireland’s Data Protection Authority (DPA) to ban Meta's processing of personal data for behavioral advertising, affecting the entire European Economic Area (EEA). Norway’s Data Protection Authority has already imposed a similar ban.
Meta has defended its activity in the EU, stating that users have agreed to the Terms & Conditions contract, which in Meta's view allows it to process personal data for personalized ads. However, under the General Data Protection Regulation (GDPR), Europeans need to give explicit consent for personalized ads. The EU courts have disagreed with Meta.
Privacy advocate Alexander Hanff has pointed out potential discrepancies with EU Consumer Protection Law. He stated that Meta's new business model doesn't allow consumers to negotiate terms, creating an imbalance, which could make the contract non-binding and void under EU law.
Future consequences for Meta if it fails to comply with the ban could include fines, bank account seizures, removal of Facebook and Instagram apps from European stores, or directing ISPs to undertake network-level intervention. Meta could also potentially withdraw its services from Europe until it finds a lawful business model acceptable to European authorities.