Google, Facebook, Instagram – at first glance, the platforms look like free offers. But it is actually paid at different levels: with personal data, attention, time – and increasingly also with money. An analysis of the hidden costs behind the digital free culture.

Data as a business model

Digital platforms such as Google, Facebook and Instagram are financed primarily through advertising based on personalized user data. Location information, searches, interactions and preferences are permanently analyzed in order to be able to use as precisely as possible. According to the annual report, Meta, the parent company of Facebook, Instagram and WhatsApp, comes from advertising proceeds in 2024 in 2024. Alphabet, the Google Group, also achieves most of his income from advertisements.

In 2023, the European Court of Justice decided that personalized advertising is only legitimate if users actively consent. In response to this, Meta introduced a paid subscription model. If you want to use Facebook or Instagram without advertising and data processing, you have to pay 5.99 euros (on the web) or 7.99 euros (on mobile devices) per month – and that per account. Consumer advocates sharply criticize this development. The Consumer Center NRW filed a lawsuit against META, since the consent to data processing in the new model is not classified as voluntary. The choice between data protection and monthly payment is a de facto forced position.

Digital Markets Act

With the Digital Markets Act (DMA), the European Union has created a legal instrument in order to regulate dominant platforms more. Since March 2024, new obligations for so -called gatekeepers such as Meta, Google or Apple have applied. The regulations aim to better protect user data, enable more interoperability and prevent distortions of competition.

In this way, Google can no longer link personal data from various services such as YouTube and web search without consent. Messenger applications should also be compatible with each other in the future. The EU Council said the aim was to limit the concentration of power of the large platforms and to give users more control over their data.

Time as an invisible currency

In addition to data and money, the time invested plays a central role. Platforms are designed in such a way that they are used as long as possible. Algorithms prioritize content that cause emotional reactions or encourage scrolling. Instagram in particular promotes continuous use with reels and story formats.

Data from the Backlinko analysis portal show that users spend an average of 33.1 minutes a day on Instagram worldwide. In the age group of 18 to 24 year olds, it is over 50 minutes a day, which corresponds to a monthly amount of time of more than 25 hours. This service life not only increases the advertising revenue, but also intensifies the data profile of each individual.

Editor finance.net

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