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.



OpenAI Secures $4 bln Credit Facility

The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)
The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)
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OpenAI Secures $4 bln Credit Facility

The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)
The OpenAI logo is seen in this illustration taken, February 3, 2023. (Reuters)

OpenAI said on Thursday it has secured a new $4 billion credit facility, in addition to the $6.6 billion investment the AI startup unveiled on Wednesday.

The revolving credit facility that is undrawn at closing has been established with JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS and HSBC, Reuters reported.

The company now has access to over $10 billion in liquidity, OpenAI said in a blog post.