Tech giant Meta has announced a reduction in the monthly fees for its platforms Facebook and Instagram, dropping the cost from 9.99 euros to 5.99 euros. This revelation came from a Senior Meta Executive, who stated that the move aims to address concerns raised by privacy and antitrust regulators.
According to reports from Reuters, the decision to cut prices follows mounting criticism from privacy activists and consumer groups regarding Meta’s no-ads subscription service in Europe. Critics argue that this service requires users to pay a fee to safeguard their privacy.
Meta initially launched the subscription service in November 2023 in response to the Digital Markets Act (DMA), which restricts the company’s ability to personalize advertisements for users without their explicit consent. This limitation has impacted Meta’s primary revenue stream significantly.
In a statement made during a European Commission hearing, Tim Lamb, a lawyer representing Meta, emphasized the company’s desire to expedite the adjustment process. Lamb stated, “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.”
He further added, “That is by far the lowest end of the range that any reasonable person should be paying for services of this quality. And I think that is a serious offer. The regulatory uncertainty at the moment is out there and it needs to settle down quickly.”
Meta’s decision to reduce fees reflects an attempt to strike a balance between complying with EU privacy laws and addressing concerns outlined in the DMA. The company aims to navigate through regulatory challenges while maintaining its service quality and user base.
As Meta continues to engage with regulators and adapt to evolving privacy and antitrust frameworks, the adjustment in monthly fees for Facebook and Instagram represents a proactive step towards addressing regulatory pressures in the European market.
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