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Instagram: Criticism of the “pay for data protection” business model

2024-02-20T09:01:55.160Z

Highlights: Instagram: Criticism of the “pay for data protection” business model. Open letter to the EU signed by 28 organizations, including the data protection organization NOYB led by Max Schrems. The criticism focuses primarily on the aspect that Meta could charge up to 250 euros annually for a basic right. The dispute should be seen against the background of the Digital Markets Act, which has been aimed at regulating tech giants more closely since May 2023. The move appears to be a desperate attempt to compensate for financial losses caused by the loss of advertising revenue.



As of: February 20, 2024, 9:46 a.m

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Data protection advocates criticize Instagram's plan to make users pay for data protection and call for EU intervention.

An open letter reveals the controversy.

At a time when data protection and digital rights are at the center of social discussion, Instagram, the most popular influencer marketing platform from parent company Meta, has caused a stir.

The plan to make users pay to protect their data from commercial use has sparked a wave of outrage among privacy advocates.

An open letter to the EU signed by 28 organizations, including the data protection organization NOYB led by Max Schrems, represents the latest chapter in an ongoing debate.

Data protection advocates criticize Instagram's plan to make users pay for data protection and call for EU intervention.

© Vincent Isore/IMAGO

A controversial business model

Meta tried to meet the EU's strict data protection requirements with a paid subscription model.

The idea: Users should pay if they do not want their data to be used for advertising purposes.

But this approach met with strong headwinds.

The data protection advocates' open letter makes it clear that privacy protection must not become a commodity that is only available to those who can afford it.

Max Schrems, who has already attracted attention in the past through successful lawsuits against inadequate data protection in transatlantic agreements, is once again at the forefront of the protest.

With the support of renowned digital rights groups such as the Wikimedia Foundation and the Irish Council for Civil Liberties, he is calling for decisive intervention by the European Data Protection Board.

Most recently, the company introduced more safety features for teenagers on Instagram.

The cost of data protection

The criticism focuses primarily on the aspect that Meta could charge up to 250 euros annually for a basic right.

The accusation: The company is taking its users' data hostage in order to extort money.

Meta justifies the model as offering a choice.

But data protection advocates see this as an attempt to exploit users and make a profit from their data.

The dispute should be seen against the background of the Digital Markets Act, which has been aimed at regulating tech giants more closely since May 2023.

Meta is responding to the new regulations with the paid model, which charges up to 13 euros per month for not using personalized advertising.

Given the pressure to develop new sources of revenue, the move appears to be a desperate attempt to compensate for financial losses caused by the loss of advertising revenue.

Source: merkur

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