Facebook Parent Meta's New Privacy Fee Strategy Faces Backlash As It Could Set Costly Trend In App Privacy
Portfolio Pulse from Nabaparna Bhattacharya
Meta Platforms, Inc. (META) is facing criticism for its new privacy fee strategy in Europe, where users can either agree to be tracked for personalized advertising or pay up to €251.88 annually for privacy on Instagram and Facebook. Advocacy group NOYB filed a complaint with the Austrian data protection authority, stating the cost is 'unacceptable' and could set a costly trend if other app providers follow suit. A Meta spokesperson defended the pricing, while META shares dropped slightly in premarket trading.
November 28, 2023 | 1:40 pm
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Meta Platforms, Inc. faces backlash and a legal complaint over its new privacy fee strategy in Europe, potentially influencing user sentiment and regulatory scrutiny.
The introduction of a privacy fee by Meta is controversial and has led to a legal complaint, which could harm the company's reputation and user trust. This negative sentiment, coupled with potential regulatory challenges, may lead to a short-term negative impact on Meta's stock price. The premarket trading movement suggests that investors are already reacting to the news.
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