Meta Platforms is reportedly considering introducing ad-free subscription plans for its Instagram and Facebook platforms in Europe. The move is seen as an attempt to comply with European Union regulations that may otherwise limit its ability to personalize ads without user consent. The proposed subscription plan, priced at 10 euros per month, would offer users a choice between a free, ad-supported option and a paid subscription. This strategy could help Meta comply with regulations while minimizing the impact on its ad business. The higher price of the subscription plan compared to Netflix’s basic streaming plan suggests that Meta may be factoring in the commissions charged by Apple’s and Google’s app stores.
Meta Platforms, previously known as Facebook, has been facing regulatory scrutiny in Europe, resulting in fines and restrictions on its ad practices. Earlier this year, the company was fined 390 million euros by Ireland’s Data Privacy Commissioner for using the “contract” legal basis to send targeted ads to users without their consent. As a response, Meta stated its intention to seek user consent before allowing businesses to target ads. The introduction of ad-free subscription plans in Europe can be seen as a proactive measure by Meta to comply with evolving regulatory requirements and safeguard its major revenue source.
While Meta spokespersons have emphasized their belief in the value of free services supported by personalized ads, the company is exploring options to ensure compliance with regulations. The details of the proposed subscription plans, including the final pricing and availability, have not been disclosed. However, the introduction of paid versions of Facebook and Instagram without ads for European users indicates Meta’s willingness to provide alternative options to retain its user base and comply with regulatory demands.
