Meta’s WhatsApp embraces ads, pushing users toward “Pay or Okay” surveillance model

• WhatsApp will introduce targeted ads in its Updates tab and Status posts, using user data like location and interaction history.
• Meta may impose a “Pay or Okay” model on WhatsApp, charging users to avoid data harvesting, despite EU privacy laws prohibiting it.
• WhatsApp’s shift to ads marks a stark departure from its ad-free origins, aligning it with Meta’s surveillance advertising tactics.
• European regulators have ruled Meta’s forced data-sharing model illegal, but weak enforcement allows the company to continue exploiting loopholes.
• Privacy advocates warn of a potential mass migration to alternatives like Signal as WhatsApp becomes another Meta data-harvesting tool.

WhatsApp, once celebrated as a bastion of privacy with end-to-end encryption, is now surrendering to Meta’s relentless pursuit of profit through invasive advertising. The messaging giant, used by more than 2 billion people worldwide, will soon display targeted ads in its “Updates” tab and Status posts, marking a dramatic departure from its ad-free origins.

Ads will be tailored using user data including location, language, and interaction history, raising alarms about consent and surveillance. Worse yet, Meta may soon force WhatsApp users into its controversial “Pay or Okay” model, charging fees to avoid data harvesting. This move exposes Meta’s disregard for privacy laws and its willingness to exploit users under the guise of “evolution.”

The end of WhatsApp’s ad-free era

For years, WhatsApp resisted advertising, relying instead on a modest $1 annual fee before Meta’s acquisition in 2014. Now, under Meta’s control, the platform is morphing into another cog in the surveillance advertising machine. Alice Newton-Rex, WhatsApp’s VP of product, framed the shift as inevitable: “The new ads and promotion products felt like the next natural evolution.” But this “evolution” is nothing more than a regression into the same data-mining tactics that have made Facebook and Instagram notorious.

Ads will appear as full-screen placements in Status updates, which are ephemeral posts similar to Instagram Stories, and within promoted channels in WhatsApp’s discovery directory. Meta claims these ads are “built with privacy in mind,” yet they rely on behavioral tracking, including geographic location, language settings, and engagement with other ads. For users who linked their WhatsApp accounts to Meta’s Account Center, the targeting will be even more precise, drawing from Facebook and Instagram activity.

Privacy erosion under “Pay or Okay”

The most alarming prospect is Meta’s potential expansion of its “Pay or Okay” model to WhatsApp. Already implemented on Facebook and Instagram in Europe, this scheme forces users to either surrender their data for ad targeting or pay a monthly fee—currently €9.99—to opt out. Max Schrems, chairman of privacy group noyb, condemned the tactic: “Meta is doing exactly the opposite of what EU law requires… Without freely given consent, linking data and showing personalised advertising is clearly illegal.”

European regulators have already ruled the model unlawful under the Digital Markets Act (DMA) and GDPR, which mandate genuine user consent for data sharing. Yet Meta continues to exploit loopholes, knowing enforcement is weak. Schrems noted, “Meta learned that there are no real consequences.” If applied to WhatsApp, the model could see users paying exorbitant fees simply to retain basic privacy in a far cry from the app’s original $1 annual cost.

A monopoly unchecked

Meta’s dominance in messaging raises antitrust concerns, particularly as it integrates WhatsApp deeper into its advertising ecosystem. The EU initially greenlit Meta’s acquisition of WhatsApp, but under the DMA, such consolidation now faces stricter scrutiny. Article 5(2) of the DMA explicitly prohibits forced data merging without explicit consent in a rule Meta flouts with impunity.

Meanwhile, privacy-focused alternatives like Signal operate on modest budgets (just $50 million annually), proving that ethical messaging is possible without surveillance. Schrems predicts a user exodus: “We expect that Meta’s push to show ads on WhatsApp will lead to the next big exodus to Signal.”

WhatsApp’s transformation under Meta is a cautionary tale of corporate greed eclipsing user trust. What began as a secure, ad-free platform is now another data-harvesting tool, with users likely to be forced to choose between paying for privacy or surrendering to surveillance. As regulators dither, Meta’s brazen disregard for privacy laws sets a dangerous precedent.

Sources for this article include:

ReclaimTheNet.org

NOYB.eu

TechCrunch.com