In a recent development, the European Data Protection Board (EDPB) has reportedly made a decision that could have significant implications for Meta's advertising business model in the European Union. According to insiders cited by Politico, the EDPB has ruled that large platforms such as Facebook and Instagram cannot impose a "binary" choice between payment and consent on users.

Meta, formerly known as Facebook, has been pushing for a binary choice model, wherein users would either have to consent to the use of their personal data for targeted advertising or pay a monthly fee for ad-free access to its platforms. However, the EDPB's decision will force Meta to reform its business model to comply with EU law, granting users within the bloc the right to reject data tracking.

The EDPB has been discussing the "consent or pay" model this week, following a request made in February by three concerned data protection authorities. A spokesperson for the EDPB confirmed that an opinion on this matter was adopted on Wednesday, with the publication of the decision slated for later today.

Meta's previous attempts to process user data for ads were met with regulatory and legal obstacles, prompting the company to introduce a controversial subscription offer in the EU last year. Meta argued that its offer constituted valid consent under the EU's General Data Protection Regulation (GDPR), but critics pointed out that the binary choice was inherently flawed beyond the issue of pricing.

Notably, the European Commission is investigating whether Meta's use of this model aligns with the Digital Markets Act and the Digital Services Act, both of which require platforms to obtain user consent for data processing in advertising. However, it is the EDPB's opinion that carries crucial weight regarding compliance with existing EU data protection laws.

The full details of the EDPB's decision are eagerly awaited by privacy advocacy groups and industry stakeholders alike. Politico cited part of the ruling, stating that large online platforms will struggle to meet the requirements for valid consent if users are given a binary choice between data processing and a fee.

Nonprofit organization noyb, which has been fighting against the "consent or pay" approach for years, hailed the EDPB's decision as a victory against Meta. Its founder and chairman, Max Schrems, emphasized the need for Meta to provide users in the EU with a genuine option to personalize advertising.

Meta, on the other hand, has not provided any immediate comment on the matter. As the company grapples with the EDPB's ruling, the future of its advertising business model in the EU remains uncertain.