New subscription model of Meta in the EU encounters privacy issues

Meta, the parent company of Facebook and Instagram, has recently introduced a controversial model in Europe that essentially forces users to choose between paying for an ad-free experience or consenting to have their online behavior tracked for targeted advertising. This strategy, seen as an attempt to sidestep stringent EU privacy regulations, has drawn criticism from privacy advocates, including the Austrian group Noyb.

New scheme will be introduced

Under this new scheme, users can either subscribe to a paid version of Facebook and Instagram, with prices starting at €9.99 per month on the web and €12.99 on mobile platforms, or continue using the platforms for free while agreeing to have their data used for advertising purposes. This dual-option model has been perceived as a cunning way to undermine the essence of user consent, a cornerstone of EU privacy laws.

Noyb, led by privacy activist Max Schrems, has raised serious objections to Meta's approach, filing a complaint with Austria's data protection authority. The group argues that the subscription fees are exorbitant, especially considering Meta's reported average revenue per user in Europe, which was just $16.79 between Q3 2022 and Q3 2023. The annual cost of protecting one's privacy through this subscription could reach over €250 for users with both Facebook and Instagram accounts, a figure far beyond the average revenue generated per user.

The pricing strategy under EU’s 

This pricing strategy is particularly concerning for those in financial difficulty, such as the individual represented by Noyb in their complaint, who is on unemployment assistance and cannot afford the high costs of maintaining privacy. Schrems points out that over 20% of the EU population is at risk of poverty, and for many, choosing between privacy and essential expenses is not a choice at all.

Far-reaching model of Meta

The implications of Meta's model are far-reaching. Should other app developers adopt similar strategies, the cumulative cost for users to maintain their privacy could skyrocket, essentially turning privacy into a luxury. This could lead to a domino effect, where online privacy becomes unaffordable for the average user, fundamentally altering the landscape of internet usage and rights in the EU.

Noyb's challenge to Meta's strategy is not just about one company's business model, but about the broader issue of ensuring that privacy remains a fundamental right accessible to all, not just those who can afford to pay for it. The outcome of this case could set a precedent for how digital privacy is treated in an increasingly data-driven world.