Launched in November 2023, the “pay or OK” model allows users to opt out of personalized ads on Meta platforms in exchange for a fee.

However, the European Commission is concerned that Meta did not comply with EU consumer protection laws when rolling out the “pay or OK” model on Facebook and Instagram.

The Commission’s Consumer Protection Cooperation (CPC) Network, which brings together member states’ consumer protection authorities, sent a letter to Meta on Monday, pointing out a number of practices it considers misleading and unfair.

Meta must respond by September 1. If it fails to do so, the CPC authorities may decide to impose sanctions on the company.

Euractiv recalls that the Commission already stated in its preliminary findings of 1 July that this Meta model infringes EU competition law.

The website reported that the Commission was concerned that Meta may have, among other things, misled users with unclear navigation and data usage terminology, and may have “pressured users to make a swift decision without adequate time to understand the implications.”