Meta lowers European Union advertising costs for ad-free subscriptions while under regulatory data privacy scrutiny
Introduction
In an effort to comply with the EU’s Digital Markets Act (DMA), Meta has proposed reducing the price of its ad-free subscription service for Facebook and Instagram users in the European Union. Currently, the only way regional users can avoid tracking and profiling on these social networks is by paying for an ad-free experience.
According to a report by Reuters, Meta’s lawyer Tim Lamb revealed the detail at a workshop in Brussels today to discuss the company’s approach to complying with the DMA.
Reduced Pricing Offer
Meta has offered to almost halve the cost of the subscription from €9.99 per month per Facebook or Instagram account, to €5.99 (and with a slightly reduced monthly fee for each additional account). This move is seen as an attempt by Meta to accelerate the process and reach a steady state in its compliance with the EU’s data protection regulations.
"We have wanted to accelerate that process for some time because we need to get to a steady state … so we have offered to drop the price from €9.99 to €5.99," Lamb said at the workshop.
Controversy Surrounding Ad-Free Subscription Pricing
However, not everyone is convinced that reducing the price of ad-free subscription will address the underlying issues with Meta’s consent mechanism. The founder of noyb (None of Your Business), Max Schrems, has responded to the news, stating:
"We know from all research that even a fee of just €1.99 or less leads to a shift in consent from 3-10% that genuinely want advertisement to 99.9% that still click yes," he said. "The GDPR requires that consent must be ‘freely’ given. In reality, it is not about the amount of money — it is about the ‘pay or okay’ approach as a whole."
Schrems argues that the entire purpose of Meta’s pay-or-okay approach is to get users to click on "okay," even if this is not their free and genuine choice.
Final Say on GDPR Compliance
The final say on Meta’s consent mechanism and its compliance with the GDPR regulations remains complex. The founder of noyb, Max Schrems, has expressed concerns that reducing the price of ad-free subscription does not address the underlying issues with Meta’s consent mechanism.
"The mere change of the amount makes this approach legal," Schrems said. "We do not think."
Related Stories
