European Consumers Challenge Meta Paid Service as Privacy 'Smokescreen'

Meta has reaped rich financial rewards by selling its users' data to advertisers, but its model has pit it against EU regulators. Kirill KUDRYAVTSEV / AFP/File
Meta has reaped rich financial rewards by selling its users' data to advertisers, but its model has pit it against EU regulators. Kirill KUDRYAVTSEV / AFP/File
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European Consumers Challenge Meta Paid Service as Privacy 'Smokescreen'

Meta has reaped rich financial rewards by selling its users' data to advertisers, but its model has pit it against EU regulators. Kirill KUDRYAVTSEV / AFP/File
Meta has reaped rich financial rewards by selling its users' data to advertisers, but its model has pit it against EU regulators. Kirill KUDRYAVTSEV / AFP/File

Consumer groups from eight EU countries lodged complaints on Thursday against Meta, accusing the US company of illegally processing user data and using its "pay or consent" system as a "smokescreen" for privacy breaches.
Meta has reaped rich financial rewards by selling Facebook and Instagram user data to advertisers, but its business model has pit the US-based firm against EU regulators over data privacy, AFP said.
In November, Meta launched a "pay or consent" system allowing users to withhold use of their data for ad targeting in exchange for a monthly fee -- a model already facing two challenges from privacy and consumer advocates.
Announcing the latest action, the European Consumer Organization (BEUC) called the system "a smokescreen to obscure the real problem of massive, illegal data processing of users which goes on regardless of what users choose."
Eight consumer groups in the Czech Republic, Denmark, France, Greece, the Netherlands, Norway, Slovenia and Spain are filing complaints with their local data protection authorities, the Brussels-based umbrella body said in a statement.
The groups argue that Meta is still violating the European Union's mammoth general data protection regulation, which has been at the root of EU court cases against the online giant.
"It's time for data protection authorities to stop Meta's unfair data processing and its infringing of people's fundamental rights," said Ursula Pachl, BEUC deputy director general.
BEUC in a report said that Meta is violating the EU data law's principles that demand transparency as well as limiting how much user data it processes and what it is used for.
"Meta seems to be of the opinion that in order for the company to earn money with advertising, it is justified to collect any imaginable data on consumers' activities, location, personalities, behavior, attitudes and emotions," the report said.
"In reality, the massive exploitation of the private lives of hundreds of millions of European consumers for commercial gain fails to respect various fundamental principles of the GDPR."
Flurry of complaints
The Silicon Valley company allows users of Instagram and Facebook in Europe to pay between 10 and 13 euros (around $11 and $14) a month to opt out of data sharing.
Under the GDPR law, consent must be freely given but BEUC argues that its model coerces consumers into accepting Meta's processing of their personal data.
"The company also fails to show that the fee it imposes on consumers who do not consent is indeed necessary, which is a requirement stipulated by" an EU top court.
"Under these circumstances, the choice about how consumers want their data to be processed becomes meaningless and is therefore not free," the report said.
The challenges are the latest in a cat-and-mouse game between the EU and Meta.
The EU's data watchdog, the EDPB, in December told Meta it could not use the personal data of users for targeted ads without their explicit consent.
The EDPB is due to decide in the next few weeks whether a fee system like Meta's violates the bloc's data privacy laws.
Thursday's complaint is the third against Meta's "pay or consent" scheme.
BEUC in November said together with 19 of its members that they had launched a joint complaint with Europe's network of consumer protection authorities against the system.
Before that, the privacy group NOYB, which has won countless victories against Meta and others, filed a complaint.



US Allows Nvidia to Send Advanced AI Chips to China with Restrictions

An Nvidia logo and a computer motherboard appear in this illustration taken August 25, 2025. (Reuters)
An Nvidia logo and a computer motherboard appear in this illustration taken August 25, 2025. (Reuters)
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US Allows Nvidia to Send Advanced AI Chips to China with Restrictions

An Nvidia logo and a computer motherboard appear in this illustration taken August 25, 2025. (Reuters)
An Nvidia logo and a computer motherboard appear in this illustration taken August 25, 2025. (Reuters)

The US Commerce Department on Tuesday opened the door for Nvidia to sell advanced artificial intelligence chips in China with restrictions, following through on a policy shift announced last month by President Donald Trump.

The change would permit Nvidia to sell its powerful H200 chip to Chinese buyers if certain conditions are met -- including proof of "sufficient" US supply -- while sales of its most advanced processors would still be blocked.

However, uncertainty has grown over how much demand there will be from Chinese companies, as Beijing has reportedly been encouraging tech companies to use homegrown chips.

Chinese officials have informed some firms they would only approve buying H200 chips under special circumstances, such as development labs or university research, news website The Information reported Tuesday, citing people with knowledge of the situation.

The Information had previously reported that Chinese officials were calling on companies there to pause H200 purchases while they deliberated requiring them to buy a certain ratio of AI chips made by Nvidia rivals in China.

In its official update on Tuesday, the US Commerce Department's Bureau of Industry and Security said it had changed the licensing review policy for H200 and similar chips from a presumption of denial to handling applications case-by-case.

Trump announced in December an agreement with Chinese President Xi Jinping to allow Nvidia to export its H200 chips to China, with the US government getting a 25-percent cut of sales.

The move marked a significant shift in US export policy for advanced AI chips, which Joe Biden's administration had heavily restricted over national security concerns about Chinese military applications.

Democrats in Congress have criticized the move as a huge mistake that will help China's military and economy.

- Chinese chips -

Nvidia chief executive Jensen Huang has advocated for the company to be allowed to sell some of its more advanced chips in China, arguing the importance of AI systems around the world being built on US technology.

The chips -- graphic processing units or GPUs -- are used to train the AI models that are the bedrock of the generative AI revolution launched with the release of ChatGPT in 2022.

The GPU sector is dominated by Nvidia, now the world's most valuable company thanks to frenzied global demand and optimism for AI.

H200s are roughly 18 months behind the US company's most state-of-the-art offerings, which will still be off-limits to China.

Nvidia's Huang has repeatedly warned that China is just "nanoseconds behind" the United States as it accelerates the development of domestically produced advanced chips.

On Wednesday, leading Chinese AI startup Zhipu said it had used homegrown Huawei chips to train its new image generator.

Zhipu AI described its tool as "the first state-of-the-art multimodal model to complete the entire training process on a domestically produced chip".

The startup went public in Hong Kong last week and its shares have since soared 75 percent -- one of several dazzling recent initial public offerings by Chinese chip and generative AI companies, as high hopes for the sector outweigh concerns of a potential market crash.


Apple Rolls Out Creator Studio to Boost Services Push, Adds AI Features

A customer compares his old iPhone with the newly launched iPhone 17 pro max at an Apple retail store in Delhi, India, September 19, 2025. (Reuters)
A customer compares his old iPhone with the newly launched iPhone 17 pro max at an Apple retail store in Delhi, India, September 19, 2025. (Reuters)
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Apple Rolls Out Creator Studio to Boost Services Push, Adds AI Features

A customer compares his old iPhone with the newly launched iPhone 17 pro max at an Apple retail store in Delhi, India, September 19, 2025. (Reuters)
A customer compares his old iPhone with the newly launched iPhone 17 pro max at an Apple retail store in Delhi, India, September 19, 2025. (Reuters)

Apple on Tuesday unveiled Apple Creator Studio, a new subscription bundle of professional creative software priced at $12.99 a month or $129 a year, as the iPhone maker steps up its push into paid services for creators, students and professionals.

The company has used its services business, which includes its Apple ‌Music and ‌iCloud services, to drive ‌growth ⁠in recent ‌years, helping counter slower hardware growth and generate recurring revenue.

Apple Creator Studio bundles some of the company's best-known creative tools into a single subscription, including Final Cut Pro, Logic Pro ⁠and Pixelmator Pro across Mac and iPad.

The ‌package also adds premium ‍content and ‍new AI-powered features to Apple's productivity apps ‍Keynote, Pages and Numbers, while digital whiteboarding app Freeform will gain enhanced features later.

Final Cut Pro will offer new tools such as transcript-based search, visual search and beat detection to ⁠speed up video editing, while Logic Pro introduces AI-powered features like Synth Player and Chord ID to assist with music creation.

The company's Photoshop-alternative Pixelmator Pro will be available on iPad for the first time and will offer Apple Pencil support.

The subscription launches January 28 on ‌the App Store, Apple said.


Social Media Harms Teens, Watchdog Warns, as France Weighs Ban

The TikTok app logo is seen in this illustration taken January 16, 2025. (Reuters)
The TikTok app logo is seen in this illustration taken January 16, 2025. (Reuters)
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Social Media Harms Teens, Watchdog Warns, as France Weighs Ban

The TikTok app logo is seen in this illustration taken January 16, 2025. (Reuters)
The TikTok app logo is seen in this illustration taken January 16, 2025. (Reuters)

Social media harms the mental health of adolescents, particularly girls, France's health watchdog said Tuesday as the country debates banning children under 15 from accessing the immensely popular platforms.

The results of an expert scientific review on the subject were announced after Australia became the first country to prohibit big platforms including Instagram, TikTok and YouTube for under 16s last month, while other nations consider following its lead.

Using social media is not the sole cause of the declining mental health of teenagers, but its negative effects are "numerous" and well documented, the French public health watchdog ANSES wrote in its opinion, the result of five years of work by a committee of experts.

France is currently debating two bills, one backed by President Emmanuel Macron, that would ban social media for under 15s.

The ANSES opinion recommended "acting at the source" to ensure that children can only access social networks "designed and configured to protect their health".

This means that the platforms would have to change their personalized algorithms, persuasive techniques and default settings, according to the agency.

"This study provides scientific arguments for the debate about social networks in recent years: it is based on 1,000 studies," the expert panel's head Olivia Roth-Delgado told a press conference.

Social media can create an "unprecedented echo chamber" that reinforces stereotypes, promotes risky behavior and promotes cyberbullying, the ANSES opinion said.

The content also portrays an unrealistic idea of beauty via digitally altered images that can lead to low self-esteem in girls, which creates fertile ground for depression or eating disorders, it added.

Girls -- who use social media more than boys -- are subjected to more of the "social pressure linked to gender stereotypes," the opinion said.

This means girls are more affected by the dangers of social media -- as are people with pre-existing mental health conditions, it added.

On Monday, tech giant Meta urged Australia to rethink its teen social media ban, while reporting that it has blocked more than 544,000 Instagram, Facebook and Threads accounts under the new law.

Meta said parents and experts were worried about the ban isolating young people from online communities, and driving some to less regulated apps and darker corners of the internet.