Meta has proposed a reduction in its monthly subscription fee for Facebook and Instagram, slashing it to 5.99 euros from 9.99 euros, as disclosed by a senior Meta executive on Tuesday.
This move aims to address concerns raised by both privacy advocates and antitrust regulators.
The decision comes amidst growing criticism from privacy activists and consumer groups regarding Meta’s ad-free subscription service, introduced in Europe in November. Critics argue that this service obliges users to pay a fee to safeguard their privacy.
Meta introduced the subscription service in response to the Digital Markets Act, which restricts its ability to personalize ads for users without their explicit consent, impacting its primary revenue stream.
The company emphasizes that the fee model aims to strike a balance between complying with EU privacy laws and adhering to the new tech rule DMA. Tim Lamb, a lawyer at Meta, revealed during a European Commission hearing that they have been keen to expedite this process for some time. Consequently, they proposed lowering the price to 5.99 euros for a single account and 4 euros for additional accounts, which Lamb believes represents the lowest reasonable fee for services of such quality.
Acknowledging the prevailing regulatory uncertainty, Lamb stressed the importance of resolving it promptly. Meta has already presented the reduced offer to regulators earlier this year and is currently engaged in discussions with data protection authorities, particularly the Irish watchdog, to address this matter.
Under Meta’s revised model, users who consent to being tracked can avail themselves of a free service funded by advertising revenues. Companies that violate DMA regulations risk fines of up to 10% of their annual global turnover.
