Meta, the parent company of Facebook, has introduced a system where users in Europe can choose between allowing their data to be used for ad targeting or paying a monthly fee to use the platforms without their data being shared. This 'pay or consent' approach has sparked controversy and drawn criticism from the European Data Protection Board (EDPB), which argues that it puts users in a difficult position, essentially forcing them to choose between their privacy and their wallet.

The EDPB, a key EU data protection authority, emphasizes that under EU law, specifically the General Data Protection Regulation (GDPR), users have a right to data protection that should not be conditional on payment. Anu Talus, the EDPB chair, highlighted the need for online platforms to offer users a genuine choice beyond the binary 'consent or pay' model. This stance came in the wake of queries by the data protection authorities of The Netherlands, Norway, and the German state of Hamburg, seeking the EDPB's opinion on Meta's model.

Meta defends its approach by referencing an EU court ruling that, according to the company, validates subscriptions as a legally acceptable option that complies with EU laws. The fees for opting out of data sharing in Europe range between 10 and 13 euros ($11 and $14) per month for users of Instagram and Facebook. Despite this defense, the EDPB insists that the requirement for consent to data use under the GDPR must be freely given, something that is challenged by Meta's 'pay or consent' system.

The EDPB's critique stems from the belief that the consent Meta obtains through its model cannot be considered freely given, as the alternative is to pay a fee. This situation, according to privacy activists like Max Schrems, virtually guarantees consent by putting users in an impossible position, drawing parallels to situations as far from 'freely given' consent as possible. Schrems argues that in the EU, Meta must now provide a straightforward yes/no option for personalized advertising to comply with the GDPR.

Tech industry representatives, however, warn that the EDPB's stance could have unintended consequences. The Computer & Communications Industry Association (CCIA) Europe voices concern that forcing companies to offer services at a loss is unprecedented and could send detrimental signals to the business community. They argue for the right of all companies to offer paid versions of their services as a valid business model.

As Meta awaits a decision from the Irish data privacy regulator, where it is headquartered, the company's approach to user privacy and data protection in Europe remains a contentious issue. The ongoing debate highlights the broader struggles between privacy advocates, regulatory bodies, and tech giants over the future of digital advertising and user privacy.