Meta may get into trouble for ad-free subscription

Meta (Facebook’s parent company) recently introduced an ad-free subscription plan for users in Europe. In exchange, account holders can grant permission to use the data collected for targeted advertising to use the Facebook social network without having to view sponsored content. The monthly price starts at $10.90 (€9.99) for the web version and $14.20 for Android or iOS users.

However, this paid service is facing legal challenges. According to Reuters, the European Digital Rights Center (NOYB) has filed a lawsuit against the Austrian government, arguing that the subscription package amounts to charging users to protect their privacy, thus contradicting the nature of user consent as stipulated by European Union (EU) law.

Meta's Plan to Charge Facebook Users in Europe May Not Go Smoothly

Felix Mikolasch, a data protection lawyer at NOYB, expressed the group's disagreement with Meta's view of "consent." "EU law requires that consent be given by the user's free will," he said. "In contrast, Meta charges a 'privacy fee' of up to 250 euros per year for anyone who wants to exercise their fundamental right to personal data protection." The complaint, filed with the Austrian Data Protection Authority, challenges not only the concept of the fee, but also the not insignificant amount of money that must be paid each year.

NOYB has publicly criticized the fee as “unacceptable,” citing research that shows 99% of users are unwilling to pay a “privacy fee.” The organization also warned of the potential consequences if Meta were allowed to collect the fee, as other businesses and competitors would soon follow in Mark Zuckerberg’s footsteps.

"Assuming an average phone has 35 apps installed, keeping the phone in privacy mode could cost users up to $9,657 a year," NOYB said. This amount is equivalent to VND233.6 million.

In response, Meta said its subscription model is in line with European regulations and offers consumers a wide range of choices. A Meta spokesperson said the fees they charge are in line with the pricing structures of similar services in Europe, stressing the need to balance regulatory compliance with consumer preferences.

NOYB, a nonprofit organization known for filing privacy lawsuits against a number of major tech companies (including Google and Meta), is urging Austria’s privacy authority to take immediate action against Meta’s plans and impose a fine. The complaint is expected to be referred to the authority in Ireland, where Meta’s European headquarters are located.

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