Meta Platforms is actively exploring the introduction of ad-free subscription plans for Instagram and Facebook users in Europe.
Reuters reports that their sources said Meta discussed several pricing options, with one of them suggesting that the most viable plan would cost EUR10 (~RM49.50) per month. The other source indicated that the implementation of this plan is on the horizon in the coming months.
Meta’s proposition is a response to European Union regulations that pose a threat to its capacity to customise ads for users without their consent, posing a significant risk to its primary source of revenue.
By presenting users with a choice between a free, ad-supported plan and a paid subscription, Meta hopes to encourage users to opt for the former, thereby enabling compliance with regulations while safeguarding its advertising business.
For mobile devices, the cost for a single account would rise to approximately EUR13 (~RM64.30), as Meta intends to account for the commissions charged by Apple’s and Google’s app stores.
Earlier this year, the social media company faced a EUR390 million (~RM1.93 billion) fine from Ireland’s Data Privacy Commissioner and was instructed not to utilise the “contract” legal basis for targeting users with ads based on their online activity.
In response, Meta announced its intention to seek consent from EU users before permitting businesses to target ads, as part of its effort to address the evolving regulatory landscape in the region.
A spokesperson from Meta affirmed the company’s belief in “free services which are supported by personalised ads”, but is exploring “options to ensure we comply with evolving regulatory requirements”.
