Benzinga - by Rounak Jain, Benzinga Staff Writer.
Eight consumer groups in the European Union have filed complaints against Mark Zuckerberg's Meta Platforms Inc. (NASDAQ:META). The tech giant is being accused of engaging in massive, illegal data processing.
What Happened: The consumer groups claim that Meta’s data collection methods infringe upon the principles of the General Data Protection Regulation (GDPR).
These complaints are an addition to those filed in November by the BEUC network, which targeted Meta’s alleged deceptive and unfair marketing practices.
The consumer groups maintain that Meta’s "pay-or-consent" choice is a cover-up for the real issue of illegal data processing.
They argue that Meta does not have a valid legal basis for its extensive data collection from Facebook and Instagram users, as the choice it imposes on its users does not result in their freely given and informed consent.
Ursula Pachl, Deputy Director General of BEUC, commented, "Meta has tried time and time again to justify the massive commercial surveillance it places its users under. Its unfair ‘pay-or-consent' choice is the company's latest effort to legalise its business model."
According to the complaints, Meta’s data collection practices fuel a "surveillance-based ads system" that tracks consumers online and collects vast amounts of personal data for advertising purposes.
Why It Matters: The complaints come in the wake of Meta’s attempts to address privacy concerns. In August 2023, Meta proposed to ask users for consent for targeted advertisements.
Following this, in September 2023, Meta considered introducing paid, ad-free versions of Facebook and Instagram for European Union users.
However, the company faced backlash in November 2023 for its privacy fee strategy, which required users to either agree to be tracked for personalized advertising or pay a fee to maintain their data protection rights.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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