NEW YORK: Meta Platforms, the parent company of Instagram and Facebook, is reportedly exploring the introduction of ad-free subscription plans for users in Europe. In an effort to comply with European Union regulations, Meta is considering offering a paid subscription option, allowing users to choose between a free, ad-supported plan and a paid ad-free service.
Several pricing plans were discussed internally, with the 10 euro ($10.49) per month plan emerging as the most feasible option. Although the implementation timeline was not confirmed, one source indicated that the ad-free subscription service could be rolled out in the coming months.
The move comes in response to EU regulations that could limit Meta’s ability to personalize ads for users without their consent, posing a threat to the company’s major revenue source. By offering a subscription-based ad-free option, Meta aims to strike a balance between regulatory compliance and maintaining its ad business.
Currently, popular subscription services such as Netflix charge 7.99 euros for a basic plan, while YouTube Premium by Alphabet costs about 12 euros, and Spotify’s Premium service is priced at around 11 euros. For Meta’s ad-free service, the price for a single account on mobile devices might increase to approximately 13 euros, factoring in commissions charged by Apple’s and Google’s app stores, according to one of the sources.
Meta Fined 390 Million Euros
Earlier this year, Meta was fined 390 million euros by Ireland’s Data Privacy Commissioner and was restricted from using the “contract” legal basis to send users ads based on their online activity. In response, Meta announced its intention to seek users’ consent in the EU before allowing businesses to target ads, addressing evolving regulatory requirements in the region.
A Meta spokesperson stated that the company values “free services supported by personalized ads” and is exploring various options to ensure compliance with evolving regulatory standards. The Irish Data Protection Commission and the European Commission have not provided comments regarding Meta’s plans at this time.
