Interactive Advertising Bureau
16 January 2025

IAB Europe Sends Feedback Paper to the EDPB after the Stakeholder Event Regarding the 'Consent or Pay' Models

Brussels, Belgium, 16th January 2025 - IAB Europe, Alliance Digitale, BVDW, IAB Finland, IAB Ireland, IAB Italia, IAB Polska, IAB Spain, and SPIR have submitted to the European Data Protection Board (EDPB) a feedback paper outlining key remarks and concerns after the EDPB’s stakeholder event on the forthcoming draft Guidelines concerning “Consent or Pay” (CorP) models, organised on November 18, 2024. 

The undersigned trade associations emphasise the need for a unified European approach consistent with existing legal frameworks, such as the General Data Protection Regulation (GDPR) and rulings by the Court of Justice of the European Union (CJEU). It has to be noted that CorP models have already been recognised in various jurisdictions, demonstrating their legality and alignment with GDPR principles. 

A major concern is the assessment of "freely given consent" in the context of CorP. CorP models inherently provide users with autonomy by offering clear options for accessing an online service involving paying a fee or accepting the processing of personal data for personalised advertising purposes to have free access. Users also retain full freedom to choose neither option and seek alternative services instead.

Additionally, there is no obligation for businesses to provide their services for free, nor is there any obligation for businesses to provide their services at a loss which would inevitably be the case should a third, free alternative without personalised advertising be required where CorP models are used. Personalised advertising is a significant revenue driver for many online services, with contextual advertising falling short as a viable alternative. Studies indicate that contextual ads generate significantly less revenue and are less effective in filling available ad slots. It will therefore no longer be feasible for many businesses to maintain a free (or lower-priced) access option funded by advertising due to much lower revenues should such an alternative be required - which would ultimately be to the detriment of users. 

The undersigned trade associations therefore encourage the EDPB to adopt a balanced, evidence-based approach to CorP models, recognising their role in sustaining access to free online services while respecting user autonomy. Given the significant economic implications that may result from the EDPB’s evaluation of CorP, any guidance should also be adequately based on empirical research as well as appropriate consultation with competition authorities and consumer protection authorities.

The feedback paper can be found here. For more information, please contact Gosia Kowalska, Privacy & Compliance Manager, IAB Europe - kowalska@iabeurope.eu / Ninon Vagner, Privacy Director, IAB Europe - vagner@iabeurope.eu

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