Meta Introduces Ad-Free Subscription Plans for Instagram and Facebook in Europe
Meta Platforms is introducing subscription plans for Facebook and Instagram users in Europe, priced at 9.99 euros per month for web users and 12.99 euros for iOS and Android users. This move is a response to European Union regulations that restrict Meta's ability to personalize ads without user consent. Offering both ad-supported and ad-free options helps Meta comply with regulations while safeguarding its advertising revenue. Meta has faced antitrust pressure in the EU and financial penalties, emphasizing the need for compliance with evolving regulatory requirements in the region.
Karobar
On Monday, Meta Platforms announced its plan to launch subscription options for Facebook and Instagram users in Europe. This move is in response to the stringent regulations set forth by the European Union, aimed at offering ad-free experiences to social media users.
Meta's ad-free subscription plans, which are available to users in the European Union, European Economic Area, and Switzerland, will be priced at 9.99 euros ($10.58) per month for web users. For iOS and Android users, the monthly cost will be slightly higher at 12.99 euros.
These regulations from the European Union pose a significant challenge to Meta, as they limit the company's ability to personalize ads for users without their explicit consent, impacting one of its primary sources of revenue.
In the European Union, Meta has been facing increasing antitrust pressure. In a significant ruling in July, the company lost a legal battle against a data protection order issued by German antitrust authorities, with Europe's top court supporting the watchdog's authority to investigate privacy breaches in addition to antitrust matters.
To address these challenges and comply with regulations, Meta has decided to provide users with a choice between a free, ad-supported plan and a paid ad-free subscription. This approach ensures that users have the freedom to make their preferred selection, potentially allowing Meta to adhere to the regulations without adversely affecting its advertising business.
Meta has faced financial penalties in the European Union, with the Data Privacy Commissioner in Ireland imposing a fine of 390 million euros earlier this year. Additionally, the company has been informed that it cannot rely on the "contract" as a legal basis for delivering targeted ads based on users' online activities.
In response to these developments, Meta has expressed its intention to seek explicit user consent in the European Union before enabling businesses to target ads, aligning with the evolving regulatory requirements within the region.
