Meta is now facing a dilemma over Facebook and Instagram's subscription fees in the EU. The only way to comply with the DMA and avoid further conflict may be to lower its prices by more than 50 percent of its original price.
This is the new direction that Meta may be considering applying, and it is believed to help its DMA compliance issues in the region now.
Meta said that this new pricing is the lowest range it could go while still providing what people are looking for in its premium services.
Meta to Reduce Subscription Fees By About 50%
(Photo: LIONEL BONAVENTURE/AFP via Getty Images)
On the other hand, Lamb also suggested that additional accounts opting for this subscription would now charge €4 instead of €6.
These prices would be the new subscription fees imposed on the EU region should the EC approve their subscription revisions preventing data use.
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Meta's DMA Compliance Faces Roadblock
Meta's new pricing is part of its stalled DMA compliance, which faced an issue from the complaints against them regarding users not having consented to share their data.
Free users have their data shared with advertisers to bring in personalized ads, something Meta argued is essential to keeping the experience without any costs.
Meta requires a subscription for those who want to opt out of data access. In this new compromise, Meta is willing to lower the price but keep the premium service to prevent data access.
Meta and the EU's DMA
Last February, Meta faced a massive complaint from the BEUC (European Consumer Organisation), representing eight consumer rights groups, regarding the "pay or consent" tactic imposed by the company on its social media platforms. It allegedly violated the EU's GDPR (General Data Protection Regulation) for accessing data for its personalized ads.
This issue was the root of Meta's decision to consider this new move for its DMA compliance.
The European Commission designated Meta as a "gatekeeper," particularly for its Facebook and Instagram platforms when it released the list, joined by the likes of Apple, Microsoft, Google, and more.
As the DMA took effect earlier this month, Meta was one to revamp the experiences on its social media platform, including the cross-platform, interoperable experience on WhatsApp.
For compliance's sake, Meta is willing to reduce its subscription fees on Facebook and Instagram by almost half for users who want to opt out of these platforms' data grabs.
However, it remains unconfirmed if this would push through for the region, and succeeding discussions may reveal more about this price slash for the service.
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