The EU is pushing for ad-free services on online platforms.

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The European Data Protection Board (EDPB) urges major online platforms to present users with more options for accessing their services. Often, users face a binary choice: either pay or consent to sharing their data for personalised advertising. The EDPB advocates for an additional alternative to online fees or subscriptions, involving minimal or no data sharing.

Data protection experts from Germany, Norway, and the Netherlands kicked off the conversation within the EDPB, and yesterday the committee released an opinion on the matter. While this opinion isn't binding, the EDPB is made up of European supervisory authorities, so it's likely they'll follow this opinion in their supervisory activities and may issue warnings to online platforms accordingly.

"Agree or pay" is no longer sufficient

Large online platforms such as Meta, which also offers Facebook and Instagram as paid subscriptions, require users to consent to the release of personal data, as this allows advertisers to display personalized ads. This promises the platform more revenue, as higher prices are charged for such advertising. As an alternative to data sharing, a fee or subscription is often charged if the user values data protection.

The EDPB isn't too happy about this, as users often just go for the free option without thinking about the data protection implications. That's why the data protection committee is suggesting that major online platforms offer an additional option. Instead of just asking users to agree or pay, they should present an alternative that's free and doesn't require much data.

Fairness also required for data protection

The EDPB points to Article 5 of the European General Data Protection Regulation (GDPR), which outlines the principles of data protection, including purpose limitation, data minimisation and fairness. Online platforms should also consider compliance with the principles of necessity and proportionality and be able to demonstrate that data processing is GDPR-compliant.

Finnish legal expert Anu Talus, who has been EDPB Chair for almost a year, says, "Online platforms should give users real choice when it comes to consent or payment models. Today's models usually mean individuals have to either give up all their data or pay for it. As a result, most users consent to processing in order to use a service and don't understand the full implications of their choices."

Metas subscription services because of EU data protection

Talus, who is also head of the Finnish Data Protection Authority, added a note to European regulators: "Data controllers should always be careful that the fundamental right to data protection does not become a function that individuals have to pay for. Individuals should be fully aware of the value and consequences of their decisions."

Meta Platforms has been under constant scrutiny for years. In 2023, EU data protection authorities banned Facebook and Instagram from personalized advertising. As a result, the company introduced paid subscriptions to these services in order to avert severe penalties from the EU.

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