Consent-or-pay: Difference between revisions
Tags: Reverted Visual edit |
Added some background info Tags: Reverted Visual edit |
||
| Line 9: | Line 9: | ||
==Background== | ==Background== | ||
''Main article:'' [[General Data Protection Regulation]] | ''Main article:'' [[General Data Protection Regulation]] | ||
The General Data Protection Regulation was passed in 2018 with the aim of protecting online users from excessive data collection by large companies. The regulation does this by requiring companies to allow users to consent to data collection, and this is often done by an opt-in banner or pop-up on the home screen of any given website. | |||
Companies began feeling like they were losing revenue over this new regulation because they could no longer collect data for targeted ads at the same scale they'd done before. This led to the new consent-or-pay model as a workaround. | |||
==How it works== | ==How it works== | ||
| Line 23: | Line 27: | ||
==Meta investigation and fine== | ==Meta investigation and fine== | ||
After a year-long investigation by the European Commission, [[Meta]] was fined in April of 2025 for failing to comply with the Digital Markets Act (DMA). The European Commission's investigation targeted Meta's consent-or-pay model because it failed to meet the DMA's criteria of reducing personalized data for targeted ads and it does not allow users to freely consent.<ref>{{Cite web |date=30 June 2024 |title=Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 |website=European Commission}}</ref> Consequently, Meta was fined with | After a year-long investigation by the European Commission, [[Meta]] was fined in April of 2025 for failing to comply with the Digital Markets Act (DMA). The European Commission's investigation targeted Meta's consent-or-pay model because it failed to meet the DMA's criteria of reducing personalized data for targeted ads and it does not allow users to freely consent.<ref>{{Cite web |date=30 June 2024 |title=Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3582 |website=European Commission}}</ref> Consequently, Meta was fined with 228 million Euro in the month of April, and in July, the European Commission warned that the social media company may face accrued daily fines if they continue employing this tactic.<ref>{{Cite web |date=27 June 2025 |title=Meta may face daily fines over pay-or-consent model, EU warns |url=https://www.reuters.com/sustainability/boards-policy-regulation/meta-will-only-make-limited-changes-pay-or-consent-model-eu-says-2025-06-27/ |website=Reuters}}</ref> | ||
==Other uses== | ==Other uses== | ||