Meta Platforms Proposes Fee Reduction for Ad-Free Facebook and Instagram in EU

Key Points

• Meta Platforms proposes to cut the subscription fee for ad-free Facebook and Instagram in the EU from 9.99 euros to 5.99 euros.
• The reduction aims to address regulatory concerns under the EU's Digital Markets Act regarding user privacy and ad personalization.
• Meta's strategy includes discussions with EU regulators and data protection authorities to ensure compliance and foster service adoption.

In this news

Meta Platforms, the parent company of Facebook and Instagram, has proposed a significant reduction in its monthly subscription fees for these platforms in the European Union. The move, from 9.99 euros to 5.99 euros for a single account, comes after discussions with EU regulators and aims to address privacy and antitrust concerns. The company introduced an ad-free subscription service in Europe last November to comply with the Digital Markets Act (DMA), which limits the personalization of ads without user consent. This service was criticized for effectively charging users to protect their privacy.

Meta's decision to lower the fees is part of a broader strategy to accelerate the adoption of the subscription service and reach a 'steady state' in the face of regulatory challenges. The company is also in discussions with data protection authorities, particularly the Irish watchdog, to align its practices with the DMA. The reduced fee offer was made earlier this year and is now under consideration by regulators. While the subscription service offers an ad-free experience, users who consent to data tracking can continue to use the platforms for free, with the service funded by advertising revenues.

The proposed fee reduction reflects Meta's ongoing efforts to navigate complex regulatory landscapes across various markets. With the potential for fines up to 10% of annual global turnover for DMA breaches, Meta is keen to establish a sustainable model that satisfies both user privacy concerns and regulatory requirements. The outcome of these discussions and the acceptance of the new fee structure could set a precedent for how digital platforms approach user data and privacy in the EU and potentially influence global practices.