Pay or Okay’ Model, Part II: Personalized Advertisements - Competition, Consumer Protection and Unfair Competition Law Concerns

“Pay or Okay” Model Part II: Personalized Advertisements—Competition, Consumer Protection and Unfair Competition Law Concerns, authored by Pınar Bakırtaş, builds on Part I’s GDPR analysis. Part II of the paper considers the pay or okay model in personalized advertisements under competition law, the Digital Markets Act, and consumer protection rules, examining concerns around market dominance, regulatory compliance, and unfair practices.

This paper was first published in the September 2025 issue of Les Nouvelles by the Licensing Executives Society International.

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Introduction

In November 2023, Meta introduced a subscription policy for processing data for personalized advertisements in the EU, the European Economic Area and Switzerland. Accordingly, the options offered by Meta, known as the ‘pay or okay’ model, has (i) a paid version (monthly €9.99 on web or €12.99 on mobile applications) of Meta services with no ads, guaranteeing that users’ personal data is not processed for advertising purposes; or (ii) a free of charge version, which requires users to “consent” to the processing of their personal data for advertising purposes.

Part I of this paper addressed concerns raised by Meta’s ‘pay or okay’ model regarding personal data protection laws. This second part will examine concerns surrounding Meta’s ‘pay or okay’ policy focusing on potential abuse of Meta’s dominant position and its compliance with the Digital Markets Act (DMA). Additionally, it will explain the arguments raised against Meta’s new policy under consumer and unfair competition laws. The considerations in these areas are crucial both independently and in connection with data protection rules.

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