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Meta Platforms is considering the introduction of subscription plans that would eliminate ads for Instagram and Facebook users in Europe, according to sources familiar with the matter.
Various pricing options have been under discussion, with one source suggesting that a 10 euro ($10.49) per month plan is the most practical. Another source mentioned that the implementation of such a plan is expected in the coming months.
This move is in response to European Union regulations that pose a challenge to Meta’s ability to deliver personalized ads to users without their explicit consent, which is a significant source of revenue for the company.
Meta’s proposal aims to provide users with a choice between a free, ad-supported plan and a paid subscription option. This strategy could potentially encourage users to opt for the free plan, thus allowing Meta to comply with regulations without adversely affecting its advertising business.
Comparatively, Netflix offers a streaming subscription at 7.99 euros for a basic plan, while YouTube Premium by Alphabet costs approximately 12 euros, and Spotify’s Premium service is priced at around 11 euros.
On mobile devices, the cost for a single account would increase to roughly 13 euros, factoring in the commissions imposed by Apple’s and Google’s app stores, as indicated by the second source.
Meta faced a 390 million euro fine earlier this year from Ireland’s Data Privacy Commissioner and was instructed not to use the “contract” legal basis to deliver ads based on users’ online activity. In response, Meta pledged to seek users’ consent in the EU before allowing businesses to target ads, aligning with evolving regulatory requirements in the region.
A spokesperson from Meta emphasized the company’s belief in “free services supported by personalized ads” while also exploring options to ensure compliance with evolving regulatory demands.
Meta has declined to comment on the matter, and the European Commission did not respond to Reuters’ request for a statement.
(Note: Exchange rate provided: $1 = 0.9536 euros)
