Meta Platforms' Paid Ad-free Service is Targeted in EU Consumer Groups' Complaint

FILE - The Meta logo is seen at the Vivatech show in Paris, France, on June 14, 2023. (AP Photo/Thibault Camus, File)
FILE - The Meta logo is seen at the Vivatech show in Paris, France, on June 14, 2023. (AP Photo/Thibault Camus, File)
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Meta Platforms' Paid Ad-free Service is Targeted in EU Consumer Groups' Complaint

FILE - The Meta logo is seen at the Vivatech show in Paris, France, on June 14, 2023. (AP Photo/Thibault Camus, File)
FILE - The Meta logo is seen at the Vivatech show in Paris, France, on June 14, 2023. (AP Photo/Thibault Camus, File)

Meta Platforms' paid no-ads subscription service, which it rolled out in Europe this month, breaches EU consumer laws, Europe's largest consumer group said on Thursday as it took its grievance to consumer protection authorities.
The joint complaint from the European Consumer Organization (BEUC) and 18 of its members to the network of consumer protection authorities (CPC) came two days after advocacy group NOYB filed a complaint with the Austrian privacy watchdog, saying Meta's new service amounted to paying a fee to ensure privacy.
Meta has said it launched the paid no-ads subscription service, which applies to Facebook and Instagram, to comply with EU rules requiring companies to give users a choice on whether their data can be collected and used for targeted ads.
BEUC singled out several issues.
"Meta is breaching EU consumer law by using unfair, deceptive and aggressive practices, including partially blocking consumers from using the services to force them to take a decision quickly, and providing misleading and incomplete information in the process," BEUC Deputy Director General Ursula Pachl said in a statement.
BEUC said it was likely that users' data would continue to be collected and used for other purposes even if they select the new service. It also took issue with the "very high subscription fee for ad-free services" which could deter users.
"At this price, consumers are simply going to consent to Meta's profiling and tracking, which is exactly what the tech giant wants. People should not be asked to pay for protecting their privacy," Pachl said.
The ad-free service cost 9.99 euros ($10.96) monthly for Web users and 12.99 euros for iOS and Android users. Meta has said these prices are in line with Google's YouTube and Spotify's premium services and with Netflix.



Apple Offers iPhone Discounts in China as Competition Intensifies

FILE - The new iPhone 16 is displayed during an announcement of new products at Apple headquarters Monday, Sept. 9, 2024, in Cupertino, Calif. (AP Photo/Juliana Yamada, File)
FILE - The new iPhone 16 is displayed during an announcement of new products at Apple headquarters Monday, Sept. 9, 2024, in Cupertino, Calif. (AP Photo/Juliana Yamada, File)
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Apple Offers iPhone Discounts in China as Competition Intensifies

FILE - The new iPhone 16 is displayed during an announcement of new products at Apple headquarters Monday, Sept. 9, 2024, in Cupertino, Calif. (AP Photo/Juliana Yamada, File)
FILE - The new iPhone 16 is displayed during an announcement of new products at Apple headquarters Monday, Sept. 9, 2024, in Cupertino, Calif. (AP Photo/Juliana Yamada, File)

Apple is offering rare discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, as the US tech giant moves to defend its market share against rising competition from domestic rivals like Huawei.
The four-day promotion, running from Jan. 4-7, applies to several iPhone models when purchased using specific payment methods, according to its website.
The flagship iPhone 16 Pro with a starting price of 7,999 yuan and the iPhone 16 Pro Max with a starting price of 9,999 yuan will see the highest discount of 500 yuan. The iPhone 16 and iPhone 16 Plus will receive a 400 yuan reduction.
The discounts come as consumers remain cautious with spending amid China's slowing economy and deflationary pressures, with the country's consumer inflation hitting a five-month low in November.
Apple is grappling with declining market share in China, the world's largest smartphone market, where local manufacturers have intensified competition, Reuters said.
Huawei has emerged as a particularly strong challenger since its return to the premium segment in August 2023 with locally-made chipsets. Huawei had cut the prices of a variety of high-end devices, including mobile phones, by up to 3,000 yuan over the weekend on one of China's leading e-commerce platforms.
Apple briefly fell out of China's top five smartphone vendors in the second quarter of 2024 before recovering in the third quarter. The US company's smartphone sales in China still slipped 0.3% during the third quarter from a year earlier, while Huawei's sales surged 42%, according to research firm IDC.
The Apple promotion also includes discounts of 200 to 300 yuan on older iPhone models, as well as other categories of products such as MacBook laptops and iPad tablets. Customers must use designated payment methods including WeChat Pay or Alipay to qualify for the discounts.