Meta Faces Legal Challenges Over AI Training and Ad-Free Subscriptions

BigGo Editorial Team
Meta Faces Legal Challenges Over AI Training and Ad-Free Subscriptions

Meta, the parent company of Facebook and Instagram, is facing mounting legal and regulatory pressure in the UK and EU over its data practices and subscription models.

UK Regulator Urged to Investigate Meta's AI Training Plans

The Open Rights Group has filed a complaint with the UK's Information Commissioner's Office (ICO) regarding Meta's plans to use user data for AI training. Key points include:

  • Meta announced intentions to train AI on user data dating back to 2007
  • The company claims this falls under legitimate interests in UK and EU privacy laws
  • Open Rights Group argues this violates UK GDPR on multiple levels
  • Concerns over lack of user consent and unclear data processing purposes
  • Call for ICO to prohibit data use and fully investigate
The Meta logo represents the corporate identity amidst ongoing investigations into its data usage for AI training
The Meta logo represents the corporate identity amidst ongoing investigations into its data usage for AI training

EU Challenges Meta's Pay or Consent Model

Separately, the EU's Consumer Protection Cooperation Network has notified Meta that its ad-free subscription offering may violate consumer protection laws:

  • Users can pay up to €12.99/month for ad-free Facebook/Instagram or consent to data collection
  • EU regulators claim the model is misleading and confusing for users
  • Concerns over pressure tactics and unclear explanations of how data is used
  • Meta given until September 1, 2024 to propose changes or face potential fines

Meta defends its practices, stating subscriptions are an established business model and comply with European regulations. However, the company faces potential fines of up to 4% of annual revenue in EU countries if found in violation.

These challenges highlight the ongoing tension between tech giants' data practices and evolving privacy regulations in Europe. As AI development accelerates, expect increased scrutiny of how user data is collected and utilized for training purposes.