Meta Platforms, the parent company of Facebook and Instagram, has announced that it will introduce ad-free subscription plans in Europe to comply with European Union regulations. This move comes as the EU’s regulations threaten Meta’s ability to personalize ads for users without their consent, which could significantly impact its main source of revenue.
Under the new subscription plans, users in the EU, European Economic Area, and Switzerland will have the option to pay a monthly fee to enjoy Facebook and Instagram without advertisements. Web users will be charged €9.99 (S$14.40) per month, while iOS and Android users will have to pay €12.99 monthly.
This strategic decision by Meta follows the company’s recent legal battles in the EU where it faced antitrust pressure and lost a case against a German data curb order. The European Court of Justice supported the German antitrust watchdog’s authority to investigate privacy breaches, which further added to Meta’s challenges.
In order to comply with the EU regulations without significantly impacting its lucrative ad business, Meta will provide users with a choice between a free, ad-supported plan and an ad-free paid subscription plan. By doing so, the company hopes to encourage users to opt for the free plan, while still meeting the regulatory requirements.
This move by Meta also comes after it was fined €390 million earlier this year by Ireland’s Data Privacy Commissioner. The company was instructed not to use the contract as a legal basis for sending targeted ads to users based on their online activity. In response, Meta expressed its intention to seek users’ consent in the EU before allowing businesses to target ads, in order to comply with evolving regulatory requirements in the region.
Overall, Meta’s decision to offer ad-free subscription plans in Europe demonstrates its commitment to complying with EU regulations while minimizing the impact on its ad business. By presenting users with a choice between free and paid plans, Meta aims to strike a balance that satisfies both regulatory requirements and users’ preferences for an uninterrupted ad experience.
