Competition Archives

European Commission Coordinates Action Against Meta on ‘Pay or Consent’ Model

Consent or Pay, Meta | August 5, 2024

The European Commission, in collaboration with the Consumer Protection Cooperation Network, has taken coordinated action against Meta regarding its ‘pay or consent’ model. This model requires users to either pay for access to Facebook and Instagram or consent to personalized ads by Meta using their personal data. The CPC initiated this move after determining that the model may breach EU consumer laws. Key concerns include misleading information, undue pressure on consumers, and potential violations of the Unfair Commercial Practices Directive and the Unfair Contract Terms Directive. Meta must respond by 1 September 2024, or face potential sanctions.

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Italian Competition Authority Initiates Investigation into Google for Unfair Practices

The Italian Competition Authority has initiated an investigation against Google and its parent company Alphabet for potential misleading and aggressive commercial practices regarding user consent. The Authority alleges that Google’s consent requests for linking services lack adequate, complete, and clear information, potentially influencing users’ decisions on data usage. These practices might condition consumers’ freedom of choice, leading them to consent to data combination and cross-use across multiple services without full understanding.