The Austrian Federal Administrative Court (BVwG) has affirmed an earlier ruling by the Austrian Data Protection Authority (DSB), declaring the “Pay or Okay” model implemented by the Austrian newspaper, DerStandard.at, as a violation of the GDPR. This decision stresses the necessity for users to be able to selectively consent or reject each processing purpose, counteracting the newspaper’s approach of providing either consent or a paid alternative to avoid data tracking used for online advertising.
Key Developments:
– Selective Consent Requirement: The DSB and the court concluded that the “Pay or Okay” model fails to offer users a genuine choice, as it compels them into paying for services or consenting to comprehensive tracking by third parties without the option to consent to specific data processing activities.
– Widespread Implications: The case, likely to reach the Austrian Supreme Administrative Court and potentially the Court of Justice of the European Union (CJEU), highlights a significant topic within digital privacy where genuine user consent is overshadowed by commercial models.
– Consent Rates and Genuine Choice: The extremely high consent rates of 99.9% under the “Pay or Okay” model underscore a lack of genuine choice for users, aligning with privacy expert Max Schrems’ critique of this approach undermining GDPR’s core principles of freely given consent.
– Comparison with Other Jurisdictions: Attempts by DerStandard to lean on a Belgian decision for support were quashed by the Austrian court, reinforcing the admissibility of standardized legal actions, or “model cases,” as upheld in Austrian and German jurisprudence.
This ongoing judicial process is emblematic of broader challenges in balancing privacy rights with business models, urging companies to innovate within the boundaries of data protection laws. As privacy professionals, the scrutinization of such approaches is pivotal in forging practices that assure compliance without compromising user rights.
Original source link: [https://noyb.eu/en/court-decides-pay-or-okay-derstandardat-illegal]