Privacy rights group noyb has taken action against Meta’s new subscription offering in the European Union, asserting that the social media giant is violating user privacy rights with its “pay or okay” strategy. The subscription service from Meta provides users with an ad-free experience for a fee of €9.99/month on the web or €12.99/month on iOS or Android per linked Facebook and Instagram account.
noyb contends that the subscription cost imposed by Meta is not in proportion to the value the company derives from tracking user activities in the region. According to noyb, Meta reported an average revenue per user in Europe of $16.79 between Q3 2022 and Q3 2023. Comparatively, Meta’s subscription imposes a minimum annual cost of nearly €120 for users seeking to safeguard their privacy, with the amount rising to over €250 for individuals with both a Facebook and Instagram account.
The privacy advocacy group has filed a complaint in Austria, emphasizing that the high financial burden Meta places on users creates an insurmountable obstacle for EU citizens who wish to freely exercise their fundamental right to privacy. The complaint also cites research indicating that the majority of people do not want their data used for targeted ads and that individuals often feel compelled to consent to tracking when faced with a fee.
noyb warns that if Meta’s approach is successful, it could set a precedent for other app developers to adopt similar privacy fees. This, in turn, could lead to EU citizens facing a “fundamental rights fee” that could amount to several thousand euros per year for users with an average number of apps installed on their phones. The advocacy group highlights the potential negative impact on user privacy if other platforms follow Meta’s lead.
Meta has referred to a reference in a Court of Justice of the EU ruling from this summer, which discussed the legal basis for processing user data for ads, to justify its decision to charge a fee for a tracking-free product. However, noyb’s complaint focuses on the appropriateness of Meta charging users a significantly higher amount to avoid tracking than the company earns per individual it tracks.
The EU’s General Data Protection Regulation (GDPR) sets out conditions for legally obtained consent to process personal data, with a requirement that consent be “freely given.” noyb argues that the high financial cost imposed by Meta represents an unattainable bar for EU citizens to freely choose to exercise their fundamental right to privacy.
In response to noyb’s complaint, Meta spokesperson Matthew Pollard pointed to the company’s earlier blog post defending its approach, claiming it complies with EU laws. He also emphasized that Meta’s pricing for the subscription is “in line” with other ad-free premium subscriptions offered by streaming services. However, comparisons with other platforms are challenging as competitors may not offer uniform pricing across the EU.
noyb is urging Austria’s Data Protection Authority (DPA) to initiate an urgency procedure to halt Meta’s alleged illegal processing, citing the seriousness of the violations and the unusually high number of users affected. Additionally, the group is calling on the DPA to impose a deterrent fine to prevent other companies from adopting a similar privacy fee model.
