Meta Platforms is reportedly considering the introduction of ad-free subscription plans for users of Instagram and Facebook in Europe, according to two individuals familiar with the matter.
While various pricing plans have been discussed, it appears that a 10 euro ($10.49) per month subscription plan is the most viable option. One source indicated that the plan is under consideration, while the other suggested that it may be implemented in the coming months.
This proposal is Meta’s effort to comply with European Union regulations that could limit its ability to personalize ads for users without their explicit consent, posing a potential threat to its primary revenue stream.
By offering users a choice between a free, ad-supported plan and a paid subscription, Meta aims to allow users to make their own choice without adversely impacting its advertising business.
For mobile users, the price for a single account could increase to approximately 13 euros due to the inclusion of commissions charged by Apple’s and Google’s app stores, as stated by the second source.
In comparison, Netflix charges 7.99 euros for its basic subscription plan, YouTube Premium from Alphabet costs around 12 euros, and Spotify’s Premium service is priced at approximately 11 euros.
Meta faced a 390 million euro fine earlier in the year from Ireland’s Data Privacy Commissioner, which prohibited the use of the “contract” as a legal basis for delivering targeted ads to users based on their online activities.
As a response to evolving regulatory requirements in the EU, Meta stated its intention to seek user consent before enabling businesses to target ads.
A spokesperson for Meta noted the company’s commitment to “free services supported by personalized ads” while exploring “options to ensure we comply with evolving regulatory requirements.”
Meta, Ireland’s Data Protection Commission, and the European Commission declined to provide further comments on the matter.
