Meta Platforms is considering the introduction of ad-free subscriptionplans for Instagram and Facebook users in Europe, according to twoindividuals with knowledge of the matter as of Tuesday.
Several pricing options were explored, with one source suggesting amonthly fee of 10 euros ($10.49) as the most viable option, while anothersource indicated that this implementation would take place in the comingmonths.
This proposal is Meta’s effort to adhere to European Union regulationsthat could restrict its ability to personalize ads for users without theirconsent, potentially impacting its primary source of revenue. By offeringusers a choice between a free, ad-supported plan and a paid subscription,Meta aims to address regulatory concerns without significantly affectingits advertising business.
Comparatively, Netflix charges 7.99 euros for its basic streamingsubscription, YouTube Premium by Alphabet costs approximately 12 euros, andSpotify’s Premium service is priced at around 11 euros. On mobile devices,the cost for a single account would rise to approximately 13 euros due tocommissions charged by Apple’s and Google’s app stores, as mentioned by thesecond source.
Earlier this year, Meta received a 390 million euro fine from Ireland’sData Privacy Commissioner and was prohibited from using the “contract”legal basis to deliver targeted ads based on users’ online activities. Inresponse, Meta expressed its intention to seek user consent in the EUbefore allowing businesses to target ads, in order to comply with evolvingregulatory requirements in the region.
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A Meta spokesperson stated that the company values “free servicessupported by personalized ads” but is exploring “options to ensure wecomply with evolving regulatory requirements.”
The Data Protection Commission of Ireland and the European Commission didnot provide comments in response to Reuters’ requests for statements on thematter.
