Meta is offering to cut its monthly subscription fees for Facebook and Instagram from 9.99 euros to 5.99 euros, a senior Meta executive said on Tuesday the 19th of March, to address concerns raised by privacy and antitrust regulators and in response to criticism of Meta’s ad-free subscription service in Europe, which some say makes users pay for privacy protection, reports Reuters.
Meta introduced the subscription fee to comply with the European Union’s (EU) Digital Market Act (DMA), which limits its ability to personalise ads without user consent, thereby affecting its main revenue stream.
The company said the fee model aims to balance the conflicting requirements between EU privacy law and the DMA rules.
Meta lawyer Tim Lamb said at the European Commission hearing that Meta made the offer to “speed up this process” and reach a stable position. Meta offered to reduce the price
from 9.99 to 5.99 euros for a single account and 4 euros for any additional account.
Lamb stressed that this reduction is the lowest reasonable price for a service of this quality, underlining the need for immediate regulatory certainty in a context of continued uncertainty.
The one-day hearing provides an opportunity for Meta users and third parties to gain clarity on their compliance with the DMA.
Users who agree to tracking receive a free service funded by advertising revenue.
Companies can be fined up to 10% of their annual worldwide turnover for breaches of the DMA.
Also read: Meta’s Facebook and Instagram to offer paid subscriptions in Europe
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