Austrian Court Rules Against DerStandard's 'Pay or Okay' Consent Method
The Austrian Federal Administrative Court has ruled against DerStandard, Austria's leading liberal newspaper, for its 'Pay or Okay' approach to user consent. The court upheld the Austrian Data Protection Authority's decision, finding that DerStandard's implementation failed to provide users with genuine choice in data processing.
DerStandard, which pioneered the 'Pay or Okay' method when GDPR regulations took effect, required users to either consent to tracking or purchase a 'paypal login'. The court found this approach violated consent requirements, as users could only give global consent or rejection, not for specific processing types.
The decision reflects growing enforcement action across Europe. French and Belgian authorities have taken action against publishers using deceptive design practices in cookie consent banners. In Germany, privacy advocacy group noyb has announced a lawsuit against the Hamburg Data Protection Authority for delayed responses to 'Pay or Okay' complaints. Future investigations may involve the European Data Protection Board (EDPB), national data protection agencies, and consumer rights organizations.
The court's ruling establishes detailed criteria for evaluating consent mechanisms under telecommunications and data protection regulations. It highlights troubling user behavior under 'Pay or Okay' systems, with over 90% of users not receiving their preferred outcome. The case will likely proceed to Austria's Supreme Administrative Court and potentially the European Court of Justice.
