Bundling consent inside a contract is prohibited, but the theory is that by providing a paid option (which wouldn't operate under the consent basis) OR essentially a free version if you allow them to process your data, they come out from under the bundling problem. It's questionable, certainly, but the supervisory authorities could go either way with it. They'll be under pressure to allow it, as without that, WaPo and other companies with similar models will likely find it cost-prohibitive to allow EU citizens to have a free option and will paywall it entirely for them.
>... WaPo and other companies with similar models will likely find it cost-prohibitive to allow EU citizens to have a free option and will paywall it entirely for them.
I think that would be preferable. We need more incentive to be able to create decent alternatives, as it is now it seems no one can be bothered.
Few people would accept ads if they could pay the pennies that could ever be hoped to be extracted from ad exposure. The cost to the user are substantially worse than the gains at the other end.