Meta, the company behind Instagram and Facebook, is exploring the possibility of offering a monthly subscription to users in the European Union. This subscription would grant users the ability to opt out of targeted ads on these platforms.
According to an insider familiar with the situation, Meta is actively considering various alternatives to ensure compliance with numerous European regulations designed to restrict the use of personalized ads by U.S. tech firms. In the past year, the EU has implemented stricter regulations, necessitating that major tech companies obtain user consent for such advertising.
Meta is Contemplating the Introduction of a Paid Subscription Option for European Union Users
Back in July, a court decided that tech companies had the option of employing subscription models to obtain user consent. This approach involves asking users whether they would like to use Facebook and Instagram without advertisements in exchange for a fee.
According to the EU’s General Data Protection Regulation (GDPR), companies can gather and utilize the personal data of EU citizens, but only if it aligns with specific, disclosed categories. Meta has previously contended that its data collection for advertising is essential to fulfill the “contracts” between the platform and users in order to provide the service. However, privacy advocates and regulators have contested that this rationale doesn’t adequately justify using personal data for advertising purposes.
Meta is actively engaged in discussions with its primary European regulator, the Irish Data Protection Commission, regarding a compliance solution. These proposed plans, should they be put into action, will only affect users within Europe.
Meta to Charge $14 and $17
According to a recent report by The Wall Street Journal, Meta intends to charge approximately $14 per month for users seeking to avoid targeted ads on Instagram on their mobile devices, and $17 for those who wish to access both Facebook and Instagram without advertisements as part of their efforts to align with EU regulations.
A Meta spokesperson refrained from commenting on the potential introduction of a subscription plan but reiterated that they are exploring various options.
Meta stated that they believe in the worth of free services supported by personalized ads. They also mentioned that they are actively exploring options to comply with changing regulatory requirements but have no additional information to share at this time.
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