Meta Platforms has announced a significant reduction in its monthly subscription fee for Facebook and Instagram, dropping it to EUR 5.99 (approximately Rs. 540) from its previous rate of EUR 9.99 (about Rs. 900). This decision, confirmed by a senior executive on Tuesday, is part of the company’s effort to alleviate concerns from privacy and antitrust regulators.
The price decrease comes amid escalating criticism from privacy advocates and consumer organizations regarding Meta’s subscription service in Europe, which many argue compels users to pay for privacy protections.
This service was introduced in November to comply with the Digital Markets Act (DMA), which restricts Meta’s ability to personalize advertisements without user consent, threatening its primary revenue stream.
According to the company, the revised pricing model is designed to navigate the complexities of EU privacy legislation and the DMA.
“We have sought to expedite this process for some time as we need a stable footing, which is why we are proposing to reduce the price to 5.99 for a single account and 4 euros for each additional account,” stated Meta lawyer Tim Lamb during a hearing with the European Commission.
“This is the lowest feasible fee for services of this caliber, and I believe it represents a serious commitment. The current regulatory uncertainty needs to be resolved swiftly.”
Austrian privacy advocate Max Schrems countered that the issue transcends price alone.
“Research shows that even a nominal fee of 1.99 euros or less can lead to a significant shift in user consent, pushing those who truly want advertisements to nearly 100 percent acceptance. The GDPR mandates that consent must be freely given,” he explained, referencing the EU’s privacy laws.
“Ultimately, it’s not merely about the fee structure—it’s about the ‘pay or okay’ framework. This model is designed to manipulate users into consenting, even when it’s not a genuine choice. We believe that merely amending the fee does not legitimize this approach.”
The hearing, which spans the entire day, is intended to provide Meta users and other stakeholders with insights into the company’s compliance with the DMA.
Meta had initially presented the lower subscription proposal to regulators earlier this year and is currently engaged in discussions with data protection agencies, particularly the Irish authority.
Users opting to be tracked can continue to access a free service funded by advertising revenue.
Companies found in violation of the DMA could face penalties of up to 10 percent of their annual global profits.
© Thomson Reuters 2024
