Meta is facing difficulties with users and privacy advocates in the EU, as they have proposed reducing the cost of subscribing to the ad-free version.
According to information from Reuters, Meta proposed to reduce monthly subscription fees for Facebook and Instagram to 5.99 dollars. The move helps ease the concerns of European Union privacy and antitrust regulators. Also The price adjustment stems from criticism from activists and consumer groups of the ad-free subscription service.. Offering a paid version is part of the changes made by the social network to comply with the law on digital markets, as well as obligated by Apple, but it limits the possibility of personalizing advertisements without the user’s consent.
A rate that will balance the requirements of privacy laws according to Meta
During a hearing held with the European Commission, Meta wants to speed up the process to reach a “steady state”. They therefore offered the price of 9.99 to 5.99 dollars for a single account and 4 dollars per additional account, according to Meta’s lawyer, Tim Lamb.
This is the low end that any reasonable person should pay for services of this quality. This is a serious bid, so regulatory uncerta inty is there and needs to calm down quickly, the lawyer said.
Meta proposes to reduce the subscription price of its ad-free applications in the EU
On the other side of the coin, Activist Max Schrems said there is nothing wrong with the tariff but the problem is another. It all lies in the fact that user consent must be given freely
In reality, it is not about the amount of money but about paying or accepting as a whole. The only goal is to get users to agree, even if it is not their free choice. We do not believe that changing the fees makes this approach legal.
Meta has a problem as strong as Apple with developers
If you think Apple is unfair in terms of terms and conditions with its developers and charging fees, The solution proposed by Meta is to cut the rate in half it has already become clear that this is not the main disadvantage. We know that this offer was made at the beginning of 2024 and is in discussions with the authorities, in particular with the Irish regulatory bodies.
Facebook and Instagram are among the companies that collect the most information for personalized ads
Users who agree to Meta’s terms and conditions to be tracked receive a free service but it is funded by advertising revenue.. If one of the companies commits an infringement, the European Commission can fine them up to 10% of their annual global turnover.
The logic in this case is simple, if a user decides to pay not to receive advertising on Facebook and Instagram, they are aware of it but many will not spend a sum of money That’s fine, or it can be used for another subscription that they really need or are willing to see drip-feed advertising, aware that they will have Meta tracking in a not so fair way. The problem, for activists and critics, is knowing Users accept terms of service with one button.
Price cut could be approved but is still in development according to Matthew Owen, spokesperson for Meta.
