On Tuesday, Meta announced a notable reduction in the monthly subscription fee for Facebook and Instagram, lowering it from 9.99 euros to 5.99 euros, according to a statement from a senior executive. This adjustment directly reflects Meta’s response to concerns raised by privacy regulators. It underscores Meta’s dedication to addressing worries surrounding its ad-free subscription service, which was introduced in Europe in November. Critics contend that this subscription, which comes with a fee, provides users with a means to safeguard their privacy. Moreover, the service is structured to comply with European regulations that restrict the company’s capacity to personalize ads in users’ feeds, a major revenue source.
The reversal comes amid mounting criticism from users about the $114 billion-a-year advertising juggernaut’s privacy practices. This includes a recent court ruling that its collection and processing of data like names, email addresses, messages, viewing histories, and location information for targeted ads violated EU laws. The ruling is being appealed, but it has already sparked new privacy campaigns against social networks by the Austrian consumer group NOYB and other groups.
NOYB, which filed a complaint against the service with an Austrian data protection watchdog, on Tuesday warned that others may follow suit. The watchdog is holding a day-long hearing on the issue to give users and third parties a chance to ask for clarity on how Meta complies with European data protection rules.
A Meta spokeswoman said the company is in ongoing talks with European data protection authorities to explain how its paid ad-free services comply with the rules. “Meta believes its ‘Subscription for no Ads’ model reflects the latest regulatory developments, guidance, and judgments shared by leading European regulators and courts over recent years,” she said.
Meta is embroiled in a legal dispute with the Irish data protection watchdog, which oversees its operations in Europe. The watchdog seeks to fine Meta for violating the European General Data Protection Regulation (GDPR) with its ad-free subscription service, launched in November. The watchdog argues that Meta is not sufficiently obtaining user consent and should be fined up to 10% of its global turnover. This legal battle underscores the seriousness of the situation and the potential implications for Meta’s operations in Europe.
Meta is defending its ad-free subscription service, arguing that it complies with GDPR. The company asserts that it offers users the choice to opt out of personalized advertising or to pay a small fee to continue using the services without ads. It also maintains that it needs user data to provide a unique user experience and to prevent its services from becoming generic. These arguments, presented by the watchdog’s lawyer, provide a balanced view of the situation and help readers understand Meta’s perspective.