Pay or Consent Models in Europe: Already Outdated or an Overlooked Crisis in Freely Given Consent?

The transition from free digital services to paid models has sparked significant debate, particularly concerning the Pay or Consent model which allows users to either pay for services or consent to data processing. This study examines the model’s compliance with the requirement of freely given consent under data protection laws, focusing on decisions and guidelines from courts, data protection authorities and the European Data Protection Board (EDPB). It critically evaluates the applicability of a uniform standard across all online service providers, exploring whether a differentiated approach for large platforms versus smaller providers is more appropriate. Additionally, the study discusses the appropriateness of establishing such a standard at this stage, given the novelty and evolving nature of these models and the scarcity of empirical evidence.