Technology

So-called ‘Pay or Okay’ systems are on the rise in Europe. First introduced by newspapers in Austria and Germany, Meta adopted the approach for Instagram and Facebook in 2023. By now, many websites across Europe are using similar systems. Instead of giving users a genuine choice whether to accept or reject ad tracking, ‘Pay or Okay’ systems ask for a payment if you want to refuse “consent”. This leads to “North Korean consent rates” of 99.9%. Many news companies claim that the approach is necessary to finance quality media. In reality, digital advertising makes up at best 10% of the revenue of European press. Given the upcoming guidelines by the EDPB on this topic, this report analyses the industry’s arguments and the actual economic impact of ‘Pay or Okay’.