Meta Platforms, the parent company of Instagram and Facebook, is considering introducing ad-free subscription plans for users in Europe. This move comes as a response to European Union regulations that may limit Meta’s ability to personalize ads without user consent. The company is exploring different pricing options, with a 10 euro per month plan being the most likely. By offering a choice between a free, ad-supported plan and a paid subscription, Meta aims to comply with the regulations without impacting its ad revenue. The proposed plan would be more expensive than Netflix’s basic streaming subscription and would increase to roughly 13 euros on mobile devices due to commissions charged by app stores.
Earlier this year, Meta was fined 390 million euros by Ireland’s Data Privacy Commissioner and was prohibited from using the “contract” legal basis to send users targeted ads. As a result, the company announced its intention to seek user consent before allowing businesses to target ads in order to meet evolving regulatory requirements. While Meta spokespersons have emphasized their belief in free services supported by personalized ads, the company is exploring options to ensure compliance with the changing regulatory landscape. Meta, the Irish Data Protection Commission, and the European Commission have not yet commented on the news.
The New York Times initially reported on Meta’s consideration of paid versions of Facebook and Instagram with no ads for European users but did not provide specific pricing details. Should Meta move forward with ad-free subscription plans, it would provide users in Europe with an alternative to the traditional ad-supported model while helping the company navigate regulatory challenges.
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