Tuesday, November 28, 2023

Meta Faces Complaint Over Privacy Fee for Paid Subscription Service

Post authorBy Cheryl King
Post date28 November 2023


Meta Platforms’ recent launch of its paid subscription service in Europe has encountered a significant challenge. Digital rights advocacy group NOYB (None Of Your Business) has filed a complaint with an Austrian regulator, arguing that the service effectively requires users to pay a fee for privacy.

Last month, Meta introduced the ad-free service for Facebook and Instagram, citing compliance with EU regulations that mandate user choice regarding data collection and targeted advertising. The subscription costs 9.99 euros ($10.90) per month for Web users and 12.99 euros for iOS and Android users. Meta justified the subscription model as a legitimate form of consent for an advertising-funded platform, aligning with a previous ruling from Europe’s highest court.

NOYB, founded renowned privacy activist Max Schrems, disagrees with Meta’s interpretation of consent. According to the group’s data protection lawyer Felix Mikolasch, “EU law requires that consent is the genuine free will of the user. Contrary to this law, Meta charges a ‘privacy fee’ of up to 250 euros per year if anyone dares to exercise their fundamental right to data protection.”

NOYB has filed the complaint with the Austrian Data Protection Authority, expressing dissatisfaction not only with the concept of the fee but also with Meta’s fee amount. The group argues that the fee is unjustifiable considering industry estimates that indicate only 3 percent of individuals wish to be tracked, while more than 99 percent do not choose to pay a “privacy fee.” NOYB warns that if Meta’s approach prevails, other competitors may adopt similar tactics.

Comparisons drawn to popular subscription-based services highlight the potential disproportionality of Meta’s fee. Netflix, for instance, offers a basic subscription plan for 7.99 euros, while YouTube Premium from Alphabet costs roughly 12 euros, and Spotify’s Premium service is priced at around 11 euros.

In its ongoing efforts to address privacy violations major tech companies, NOYB is urging the Austrian privacy authority to expedite actions against Meta, including both a cessation of the privacy fee and the imposition of a fine. The complaint is expected to be transferred to the Irish data protection watchdog, as Meta’s European headquarters are located in Ireland.

Frequently Asked Questions

What is Meta Platforms’ paid subscription service?

Meta Platforms offers a paid subscription service for Facebook and Instagram that provides an ad-free user experience and ensures compliance with EU rules regarding data collection and targeted advertising.

Why is NOYB filing a complaint against Meta Platforms?

NOYB argues that Meta’s subscription fee violates the principle of free consent required EU law. The digital rights group believes that charging a “privacy fee” in order to exercise one’s fundamental right to data protection is unjustifiable.

What are the alternatives to Meta’s paid subscription service?

Users who do not wish to pay for Meta’s ad-free service can opt for the free, ad-supported version of Facebook and Instagram.

What other companies face complaints from NOYB?

NOYB has filed numerous complaints against major tech companies, including Alphabet’s Google, alleging privacy violations.

What action does NOYB seek against Meta Platforms?

NOYB is urging the Austrian privacy authority, with the support of an expedited process, to halt Meta Platforms’ privacy fee and impose a fine.

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