Meta to reduce subscription fees to ensure DMA compliance

Meta has announced a reduction in the monthly subscription fee for its Facebook and Instagram platforms in Europe, from 9.99 euros to 5.99 euros, with additional accounts costing 4 euros each. This move is in response to growing concerns from privacy and antitrust regulators regarding Meta’s subscription service, which critics argue forces users to pay for privacy protection that should be inherent.

The subscription service was introduced to comply with the Digital Markets Act (DMA), which restricts Meta’s ability to personalize ads without explicit user consent, impacting its primary revenue stream. Meta claims that the reduced fee aims to strike a balance between the EU privacy laws and the DMA’s requirements.

At the same time, Austrian privacy activist Max Schrems argues that the issue isn’t solely about the fee amount but rather the underlying “pay or okay” approach, where users are nudged into consenting to targeted advertising regardless of their genuine preferences. Schrems emphasizes that consent under the GDPR must be freely given, which may not be confirmed with a subscription-based model.