Meta offers reduced subscription fees for European users in response to privacy concerns

Meta Platforms has proposed slashing its monthly subscription fee for Facebook and Instagram nearly in half, from EUR 9.99 to EUR 5.99 (approximately Rs. 540 to Rs. 900), according to a senior executive at Meta. The aim is to address concerns raised by privacy and antitrust regulators. This move comes in response to growing criticism from privacy advocates and consumer organizations regarding Meta's ad-free subscription service in Europe, which some argue obliges users to pay for privacy protection.

The company introduced this subscription service in November to comply with the Digital Markets Act (DMA), which restricts its ability to personalize ads for users without their explicit consent, thereby impacting its main revenue stream. Meta stated that the fee structure is an attempt to reconcile conflicting requirements between EU privacy laws and the DMA.

During a European Commission hearing, Meta's lawyer, Tim Lamb, stated, "We have been looking to expedite this process for some time now because we need to establish a stable situation... So, we've proposed reducing the price from 9.99 to 5.99 for a single account and 4 euros for each additional account." Lamb emphasized that this price reduction represents the lowest end of the spectrum for services of similar quality. He also highlighted the uncertainty surrounding regulations and the urgent need for resolution.

The ongoing hearing aims to provide Meta's users and other stakeholders with clarity on its compliance with the DMA. Meta presented this reduced subscription offer to regulators earlier this year and is currently engaged in discussions with data protection authorities, particularly the Irish watchdog. Users who opt to be tracked will continue to receive a free service supported by advertising revenue. Companies found in breach of the DMA could face fines of up to 10 percent of their annual global turnover.