Meta Platforms, the parent company of social media giants Facebook and Instagram, has announced a significant reduction in its monthly subscription fees in a bid to address concerns raised by privacy regulators. The move, unveiled by a senior executive at Meta on Tuesday, sees the subscription cost for Facebook and Instagram slashed to 5.99 euros (roughly Rs 540) from the previous 9.99 euros (roughly Rs 900).
This development comes amidst growing criticism directed at Meta's subscription service, particularly in Europe, where it was introduced in November. Critics argue that the service, designed to offer an ad-free experience in exchange for a fee, essentially compels users to pay for privacy protection.
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Meta initiated this subscription service as part of its compliance efforts with the Digital Markets Act, a regulatory framework that limits the company's ability to personalise ads without explicit user consent, thereby affecting its primary revenue stream.
"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," Meta's legal representative, Tim Lamb, explained during a European Commission hearing, reported Reuters.
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The reduced subscription fee proposal was presented to regulators earlier this year, and Meta is currently engaged in discussions with data protection authorities, notably the Irish watchdog, regarding the matter. Users who consent to tracking will continue to enjoy a free service funded by advertising revenues.
In a separate development, the Turkish Competition Authority (TCA) has taken interim measures against Meta Platforms in response to concerns regarding the potential abuse of market dominance. This move, announced on Monday, targets data-sharing practices between Instagram and Threads, two of Meta's social media platforms, pending further investigation.
The TCA initiated an inquiry in December into Meta's activities, focusing on potential violations of competition law, particularly concerning the integration of Instagram with the newer Threads platform. The authority justified the interim measures by citing concerns that data amalgamation between these platforms could breach competition laws and adversely affect the market.
Until a final decision is reached, the interim measures will restrict data-sharing activities between Instagram and Threads, potentially impacting Meta's operations significantly in Turkey.