EU Privacy Advocates Scrutinize Meta’s Unconventional Ad-Free Subscription Model

In response to updated privacy rules in Europe, Meta has presented users in the region with a choice: agree to receive targeted ads or pay a €10 per month subscription for each app (or stop using them entirely). However, the Austrian privacy group noyb has filed a complaint against Meta on behalf of a client in financial distress, arguing that the subscription price is unfairly high and therefore not a true choice for users without the means to pay. The group cited Meta’s own data, noting that the company’s average revenue per user in Europe was $16.79 between Q3 2022 and Q3 2023, much lower than the proposed subscription fees. noyb also pointed out that despite very few users wanting personalized ads, the vast majority consent due to the lack of a genuine choice.

According to noyb, Meta’s actions could lead to a “domino effect,” potentially making online privacy unaffordable. Meta defended its approach, stating that the subscription model for ad-free services aligns with EU laws, but European courts have stressed that any fees charged to avoid tracking must be “necessary” and “appropriate.” noyb argues that the high fees will effectively impede the free choice of EU citizens, particularly those in financial difficulty.

In a tweet, noted EU privacy advocate Max Schrems compared the “Pay or Okay” system to having to pay to exercise fundamental rights, implying that Meta’s approach could potentially restrict access to privacy for those who cannot afford the fees.