The EU's Data Protection Board (EDPB) has told large online platforms they should not offer users a binary choice between paying for a service and consenting to their personal data being used to provide targeted advertising.
In October last year, the social media giant said it would be possible to pay Meta to stop Instagram or Facebook feeds of personalized ads and prevent it from using personal data for marketing for users in the EU, EEA, or Switzerland. Meta then announced a subscription model of €9.99/month on the web or €12.99/month on iOS and Android for users who did not want their personal data used for targeted advertising.
At the time, Felix Mikolasch, data protection lawyer at noyb, said: "EU law requires that consent is the genuine free will of the user. Contrary to this law, Meta charges a 'privacy fee' of up to €250 per year if anyone dares to exercise their fundamental right to data protection."
How is it unacceptable? Facebook has no onus to offer their services free of charge, and nobody is required to use Facebook.
Your options would be pay for it with cash, pay for it with advertising, or don't use the service.
It seems like the EU is trying to say Facebook is a necessary service, which is bogus.
FTFY.
That part is not allowed according to the GDPR afaik, the decision about your personal data cannot be artificially linked to something else. They can absolutely show ads, but without using your data.