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.



Nintendo Cuts Annual Profit Forecast 10% as Switch Sales Slow

A staff member sorts products at the Nintendo store in Shibuya district in Tokyo November 5, 2024. (AFP)
A staff member sorts products at the Nintendo store in Shibuya district in Tokyo November 5, 2024. (AFP)
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Nintendo Cuts Annual Profit Forecast 10% as Switch Sales Slow

A staff member sorts products at the Nintendo store in Shibuya district in Tokyo November 5, 2024. (AFP)
A staff member sorts products at the Nintendo store in Shibuya district in Tokyo November 5, 2024. (AFP)

Nintendo cut on Tuesday its operating profit forecast for the year to March 2025 by 10% to 360 billion yen ($2.36 billion), as its ageing Switch console loses steam.

The latest forecast is below analyst estimates of a 391.4 billion yen profit.

The Kyoto-based gaming company sold 4.7 million Switch consoles in the first half of the financial year. That compares with 6.8 million units sold in the same period a year earlier.

Nintendo lowered its full-year sales forecast for the console, which is in its eighth year on the market, by 7% to 12.5 million units. That would be down 20% from actual Switch sales of 15.7 million units a year earlier.

It also revised down its annual software sales forecast by 3% to 160 million units.

"For a platform that is in its 8th year in the market, both hardware and software enjoy stable demand and brisk sales," Nintendo President Shuntaro Furukawa told an online press conference.

"But sales so far fell short of our original projections. Taking into consideration their sales in the first half, we revised our forecasts for both hardware and software, and that led to the earnings revision."

Furukawa said there was no change to Nintendo's plan to announce a successor to its long-lasting Switch console in the current financial year, but did not go into specifics.

Shares in Nintendo closed down 3.9% ahead of the earnings announcements, underperforming the Nikkei average's 1.1% gain.