Meta Platforms, formerly Facebook, has proposed a reduction in its monthly subscription fee for Facebook and Instagram, slashing it from 9.99 euros to 5.99 euros in an effort to ease concerns raised by privacy and antitrust regulators.
The move comes amidst mounting criticism from privacy activists and consumer groups regarding Meta’s subscription service in Europe, which requires users to pay a fee to ensure their privacy.
The subscription service was launched by Meta in November to comply with the Digital Markets Act (DMA), which restricts the company’s ability to personalise advertisements for users without their explicit consent, thus impacting its primary revenue stream. Meta contends that the fee model aims to strike a balance between the requirements of EU privacy laws and compliance with the DMA.
Speaking at a European Commission hearing, Meta’s lawyer, Tim Lamb, stressed the company’s commitment to addressing regulatory concerns swiftly, stating that the reduced subscription fee of 5.99 euros for a single account and 4 euros for additional accounts is a serious offer aimed at reaching a “steady state.”
However, according to Reuters, Austrian privacy activist, Max Schrems, has criticised Meta’s approach, arguing that the issue is not solely about the fee amount but rather the underlying “pay or okay” approach, which he believes coerces users into consenting to tracking regardless of the fee level. Schrems stated that true consent, as required by the GDPR, must be freely given, and Meta’s current model does not align with this principle.
The day-long hearing convened by the European Commission provides Meta’s users and third parties with an opportunity to seek clarity on how the company complies with the DMA. Meta has already made the reduced subscription offer to regulators earlier this year and is currently engaged in discussions with data protection authorities, notably the Irish watchdog.
Under Meta’s current model, users who consent to being tracked receive a free service funded by advertising revenues. However, companies risk fines of up to 10% of their annual global turnover for breaching DMA regulations.