On April 17, 2024, a significant development unfolded as the European Data Protection Board (EDPB) released its opinion on the increasingly debated “Consent or Pay” model used by large online platforms.
There was a lot of anticipation for this opinion. People hoped it would bring some uniformity across Europe. However, the feedback has been mixed, with IAB Europe expressing notable concerns. 👇
IAB Reacts:
IAB Europe has expressed significant objections.
They believe that rather than reducing legal uncertainties, this verdict may potentially make them more so, which would have an impact on a greater percentage of the digital economy in addition to major platforms. People may find it more challenging to access a variety of free internet resources and information as a result.
Significant portions of the EDPB report are devoted to what IAB Europe views as excessively “abstract assumptions” on personalised advertising. It presents this advertising approach as essentially at odds with the fairness and data minimization requirements of the GDPR.
The criticism centres on the idea that the “consent or pay” paradigm turns data protection rights into a luxury that is exclusively accessible to the wealthy.
IAB Europe considers that this interpretation misrepresents the fundamental principles of GDPR, which tightly controls data processing to safeguard user privacy regardless of the nature of the underlying economic transactions.
The Third Option
In order to gain valid consent, the EDPB has suggested a third option: providing services free of behavioural advertising.
IAB Europe emphasises that the GDPR, which attempts to strike a balance between data protection rights and the freedom to conduct business, does not support requiring companies to operate at a loss.
Up next:
In order to guarantee that any future guidelines on the “Consent or Pay” model are produced with a thorough knowledge of all stakeholders’ concerns and the commercial realities they confront, IAB Europe is pushing for a public consultation.
As time goes on, it will become increasingly evident that a balanced strategy is required to protect both the right to privacy of individuals and the capacity of businesses to survive and thrive.
