Dutch competition regulator confronts Meta about false ‘free’ subscriptions

European consumer regulators, including The Netherlands Authority for Consumers and Markets (ACM), have confronted Meta for misleading consumers when introducing certain accounts. According to the regulators, American tech companies put consumers under pressure when offering a choice between a paid or ‘free’ version of Facebook or Instagram.

The free version is not free at all. By choosing that version, consumers allow Meta to show them personalized advertisements based on their data. This means that consumers accept that Meta makes money from using their data.

The regulators see various practices at Meta that conflict with consumer protection rules. For example, information on how Meta uses preferences and data for advertisements is hard to find. You can only find something about it after clicking through many links on the app or the website.

There are also questions about the fact that consumers are forced to choose a subscription type and have no access to their account until they have made the choice. According to the ACM and other organizations, platforms such as Facebook and Instagram are now important for the social lives of many people.

Meta has until September 1 to respond to a letter the regulators wrote together with the European Commission. If Meta does not take the necessary steps to prevent this, an enforcement action like a fine could follow.