Meta offers lower cost for EU ad-free subscription under privacy review
Meta has proposed reducing the price of its ad-free subscription in the European Union, which is currently the only way for regional users of Facebook and Instagram to avoid tracking and profiling. The detail was revealed by Meta’s lawyer, Tim Lamb, during a workshop in Brussels discussing the company’s approach to complying with the EU’s Digital Markets Act (DMA).
According to Reuters, Meta offered to almost halve the cost of the subscription in discussions with privacy regulators. The proposed reduction would lower the monthly fee from €9.99 to €5.99 for a single Facebook or Instagram account, with a slightly reduced fee for each additional account.
Meta spokesman Matthew Pollard confirmed the accuracy of the report but noted that the company awaits feedback from the Irish Data Protection Commission (DPC), its lead data protection regulator in the EU, before implementing any changes. Graham Doyle, the DPC’s deputy commissioner, declined to provide details on the assessment of Meta’s pricing or its wider review of the company’s approach to obtaining consent.
The reduction in subscription price reflects Meta’s efforts to address privacy concerns and comply with EU regulations. However, the final decision on implementing the price drop awaits further regulatory feedback.
Meta’s social networks cannot be used privately without charge in the EU at the moment, despite the adtech giant briefly allowing regional users who objected to its tracking to opt out of data usage for ads last year. Initially, Meta claimed a “legitimate interest” (LI) for ads processing, but this approach was found to breach data protection rules in January 2023. Subsequently, the Court of Justice of the EU ruled against Meta’s ability to claim an LI for processing, leading Meta to shift to a consent-based approach.
However, Meta’s consent mechanism has been criticized for offering users a choice between paying for access to the social networks or accepting tracking. Critics argue that this approach amounts to economic coercion and does not comply with the EU’s General Data Protection Regulation (GDPR), which requires consent to be freely given. Privacy rights group noyb, for example, has argued that Meta’s pricing is “way out of proportion.”
In addition to privacy complaints, there have been consumer protection complaints about Meta’s approach. Overall, Meta’s pricing strategy and consent mechanism are subject to controversy and legal scrutiny in the EU.
