Meta to reduce Facebook, Instagram subscription fees

WEB DESK: Meta Platforms, the parent company of social media giants Facebook and Instagram, has offered a significant reduction in its monthly subscription fees for users in Europe.

The move, disclosed by a senior executive from Meta, comes after negotiations with privacy regulators and amidst mounting criticism regarding the platform’s ad-free subscription service.

The monthly subscription fee for Facebook and Instagram, previously set at 9.99 euros, will now be nearly halved to 5.99 euros.

This adjustment aims to address concerns raised by users and regulatory bodies regarding the necessity to pay for privacy protection.

Meta’s decision to introduce a subscription service in Europe was prompted by the Digital Markets Act, which imposes restrictions on the platform’s ability to personalize ads without user consent.

This move has affected Meta’s primary revenue stream, prompting the need for alternative solutions.

“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 for a single account and 4 euros for any additional accounts,” stated Tim Lamb, a lawyer representing Meta, during a European Commission hearing.

The reduced subscription offer was presented to regulators earlier this year, and Meta is currently engaged in discussions with data protection authorities, particularly the Irish watchdog, to address privacy concerns.

Under the revised subscription model, users who consent to tracking will continue to enjoy a free service supported by advertising revenues. This adjustment seeks to strike a balance between user privacy and the platform’s revenue interests.

Meta’s willingness to adapt its subscription fees underscores its commitment to addressing regulatory concerns while ensuring user satisfaction and privacy protection within its ecosystem.