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Meta Platforms’ revised subscription service offering ad-free options on Facebook and Instagram may still violate European Union consumer and privacy laws, according to the European Consumer Organisation (BEUC). The consumer group has called on regulators to take swift action against the US tech giant.

In response to growing regulatory pressure, Meta introduced a fee-based subscription service in 2023, giving European users the option to avoid personalized ads. Last year, the company made further changes, offering less personalized ads and reducing subscription fees by 40%. However, BEUC, according to a report from Reuters, argues that these adjustments fail to address the core issues of fairness and transparency.

“Meta is not presenting Facebook and Instagram users with a fair choice,” said BEUC Director General Agustin Reyna. “The company’s changes appear to be cosmetic, while it continues pushing users toward its behavioral advertising system under unclear terms.”

BEUC has called for an investigation by consumer protection authorities, data protection regulators, and the European Commission. The organization alleges that Meta’s practices violate fundamental EU laws by failing to provide users with clear and fair choices regarding their data, steering users toward agreeing to behavioral ads through misleading terms, collecting more data than necessary without minimizing its use, and degrading services for users who opt out of personal data processing.

Meta, however, defended its policies, stating that its November 2024 updates comply with EU regulatory demands and go beyond legal requirements. A spokesperson for the company said, “We disagree with BEUC’s conclusions. Our changes meet EU regulatory expectations and provide users with more control over their data.”

Meta has faced increasing scrutiny under the EU’s stringent privacy and competition laws. In July 2024, EU antitrust regulators charged Meta with breaching the Digital Markets Act (DMA), accusing the company of forcing users into a binary choice: either accept targeted ads or pay for an ad-free service.

The revised service aims to align with these regulations, but BEUC maintains that the changes do not resolve the underlying concerns. The organization claims that users cannot freely consent to data processing and that Meta’s practices undermine consumer rights and data protection standards.

This case highlights the tension between technology companies and European regulators as platforms grapple with compliance under laws like the General Data Protection Regulation (GDPR) and DMA. Meta’s handling of user data and subscription services could set a precedent for other tech firms navigating the EU’s regulatory environment.

As regulators evaluate Meta’s policies, the outcome could significantly impact how companies manage user data and balance consumer choice in the digital advertising ecosystem.