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's China Challenge Deepens as Foreign Phone Sales Slump

FILE PHOTO: An attendee holds two iPhones 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, US September 9, 2024. REUTERS/Manuel Orbegozo/File Photo
FILE PHOTO: An attendee holds two iPhones 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, US September 9, 2024. REUTERS/Manuel Orbegozo/File Photo
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Apple's China Challenge Deepens as Foreign Phone Sales Slump

FILE PHOTO: An attendee holds two iPhones 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, US September 9, 2024. REUTERS/Manuel Orbegozo/File Photo
FILE PHOTO: An attendee holds two iPhones 16 as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, US September 9, 2024. REUTERS/Manuel Orbegozo/File Photo

Shipments to China of foreign-branded smartphones, including Apple Inc's iPhone, fell by 47.4% in November from a year earlier, according to data released on Friday from a government-affiliated research firm.
Calculations based on the data from the China Academy of Information and Communications Technology (CAICT) showed that foreign brand shipments decreased to 3.04 million units from 5.769 million units a year earlier, Reuters reported.
The decline follows October's 44.25% year-on-year drop in foreign smartphone shipments, extending a sharp downward trend in the world's largest smartphone market.
Apple, the dominant foreign smartphone maker in China, faces a slowing economy and surging competition from domestic rivals like Huawei.
Chinese consumer prices fell in November to their lowest in five months, as economic uncertainty and deflation concerns weigh on household spending.
As its market share declines, Apple launched a rare four-day promotion in China on Thursday, cutting prices by up to 500 yuan ($68.50) on its flagship models to boost sales.
Huawei has emerged as a particularly strong challenger since its return to the premium segment in August 2023 with locally-made chipsets.
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.
Shipments of phones within China, which include domestic brands, fell 5.1% year-on-year in November to 29.61 million handsets.