Meta proposes lower subscription fees for ad-free Facebook, Instagram
What's the story
Meta is planning a significant reduction in its monthly subscription charges for Facebook and Instagram in response to privacy and antitrust regulator concerns.
The fee is expected to drop from €9.99 to €5.99, as revealed by Tim Lamb, a high-ranking executive at Meta.
The move follows increasing criticism of Meta's ad-free subscription service introduced in Europe last November, which critics claim forces users to pay for their privacy.
Scenario
Striking balance between regulatory requirements and user privacy
Meta's service was initiated in compliance with the Digital Markets Act (DMA), which limits its capacity to personalize ads without user consent, affecting its main source of income.
The proposed fee model aims to reconcile the conflicting demands of EU privacy laws.
"We have been eager to expedite this process because we need to reach a stable state," said Meta's lawyer Tim Lamb during a European Commission hearing.
What's more?
Data protection authorities reviewing the offer
Meta's proposal for reduced subscription fees was presented earlier this year to regulators and is currently being discussed with data protection authorities, especially the Irish watchdog.
The latest hearing seeks to shed light on how Meta adheres to the DMA for its users and third parties.
"The current regulatory uncertainty needs quick resolution," Lamb stated, highlighting the need for swift action.
Insights
Scrutiny over Meta's controversial consent mechanism
Meta's consent mechanism has sparked debate by offering users an option between paying for an ad-free experience or using the platforms free of charge with tracking enabled.
Critics argue that this strategy uses economic pressure to persuade users into accepting tracking, thereby infringing upon the General Data Protection Regulation (GDPR), which requires freely given consent.
Privacy rights group NOYB asserts that Meta's pricing is "exorbitantly high," adding to the growing list of grievances against the tech giant's approach.
Findings
Skepticism surrounds Meta's reduced pricing proposal
NOYB's founder, Max Schrems, expressed doubt in response to Meta's proposed price reduction.
He argued that even a fee as low as €1.99 or less would still result in a shift in consent from those genuinely wanting advertisement-free experience to the majority clicking yes.
"The GDPR stipulates that consent must be 'freely' given... We do not believe that simply changing the amount makes this approach legal," he said, questioning the legality of Meta's 'pay or okay' strategy.