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EU Consumer Authorities Investigate Meta's Provision of Information on Paid Accounts

22.07.2024 | 🇳🇱 Dutch competition authority

European consumer authorities, led by the Netherlands ACM, are investigating Meta for potentially violating consumer law by pressuring users to choose between paid and 'free' versions of Facebook and Instagram without providing adequate information.


The European consumer authorities, including the Netherlands ACM, have raised concerns about Meta's introduction of paid accounts on Facebook and Instagram. They believe that Meta is pressuring users to choose between paid and 'free' versions without providing sufficient information for an informed decision.

The action was initiated following a complaint by the European consumer organization BEUC, with the French consumer authority leading the EU-wide investigation. Authorities are examining whether Meta provided clear information about the implications of choosing a paid or 'free' account and whether users felt pressured to make a quick decision.

The investigation revealed potential violations of consumer protection rules, including misleading users with the term 'free,' making it difficult to find information on data usage for personalized ads, using veiled terms for personal data, and pressuring users to choose a subscription immediately.

Meta has until September 1, 2024, to respond to the European CPC network and the European Commission. Failure to address concerns may lead to enforcement actions. The investigation is part of a broader EU scrutiny, including probes into potential violations of the Digital Markets Act, Digital Services Act, and GDPR.

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