Meta, the parent company of Facebook and Instagram, has come under renewed scrutiny from European Union regulators over its "pay-or-consent" data policy. The European Data Protection Board (EDPB) issued a stern warning, saying that the policy may violate the General Data Protection Regulation (GDPR). This model offers users a choice between paying for ad-free service or consenting to data tracking for personalized ads, raising concerns about genuine user consent.

Daily Fines Loom as Enforcement Pressure Mounts

If Meta does not revise or suspend this controversial practice, it could face daily penalties, according to EU officials. The regulators emphasized that the consent given under such a model may not be “freely given” as required by GDPR, especially when users feel compelled to choose tracking to avoid payment. The fines, potentially reaching tens of thousands of euros per day, could escalate if Meta continues to defy the legal interpretation.

Regulators Highlight Lack of Genuine User Choice

The EDPB argues that Meta’s policy creates a false dichotomy for users, pressuring them into data sharing to continue using free services. European privacy advocates claim this undermines fundamental rights and sets a dangerous precedent. The regulatory board is now coordinating with national data protection authorities across the EU to consider a unified enforcement approach.

Meta Defends Policy Amid Growing Criticism

Meta, in its defense, said the model is in line with the Court of Justice of the EU’s (CJEU) rulings and provides users with meaningful choices. The tech giant also stressed its compliance with transparency norms. However, watchdog groups remain unconvinced, citing that pay-for-privacy models risk normalizing monetized data consent, potentially harming digital rights.

Background: GDPR and Adtech Tensions

This latest development adds to the long-standing tensions between Meta and European regulators over data privacy and behavioral advertising. GDPR, enforced since 2018, mandates that consent must be freely given, specific, informed, and unambiguous. Meta’s evolving business model has been at the heart of several investigations, especially as privacy norms grow stricter across the EU.