Is Meta to charge EU users for Ad-Free Facebook and Instagram?
Mark Zukerberg's Meta to introduce Facebook and Instagram subscription models for Europeans and charge a monthly fee
Meta is considering the possibility of charging Europeans $13/month for ad-free versions of its Instagram or Facebook apps. Mark Zuckerberg’s company is to take the move in response to the European Union’s privacy regulations and ECJ’s recent ruling.
Notable, since 2021, Ireland’s Data Privacy Commission (DPC) has fined Meta 912 million euros for allegedly violating the EU’s General Data Protection Regulation (GDPR). The main violation was requiring app users to consent to viewing ads based on their online activity. The Guardian and CBS MoneyWealth both have reported citing a source.
In July 2023, the European Court of Justice ruled that under GDPR, Facebook cannot justify using personal details to target people with personalized adverts unless it receives their consent first.
What charges for Facebook and Instagram?
The proposal is under consideration that simultaneously using adverts-free Facebook and Instagram on desktop, will cost the users €17 and on smartphones €19 a month. Although the company has not confirmed, the source says the proposal is under consideration. Not finalized, but the company is mulling moving forward with it.
Currently, these are free, and if the proposal goes through, some users will still have data privacy concerns, even paying for ad-free access. YouTube is already charging almost the same in Europe. It will also significantly increase “Meta’s” revenue from Europe.
What Will be the Impact of “Meta’s” Policy Change on Competitors?
This move by Meta can also impact other social media platforms and streaming services that offer ad-free services. I might prompt consumers to evaluate the subscription offerings of different platforms, make them consider switching to other services, or stay on existing services.
Besides, social media that supports and relies on ‘user engagement’ with Ads for revenue, the new option may impact the effectiveness of advertising on these platforms.
What are European Union Privacy Rules?
The EU’s privacy rules have been established to have high standards of personal data protection. Currently, the two data protection legal frameworks in the EU are the ePrivacy Directive (Directive on privacy and electronic communications), and the General Data Protection Regulation (GDPR). GDPR regulates how the personal data of individuals in the EU may be processed and transferred. It applies across sectors and to companies of law size if these are European or foreigners.
Meta is bound to comply with the EU’s privacy rules. These restrict its ability to target users with personalized ads based on their online browsing activity. The use of Facebook and Instagram is free due to ads.
“Meta believes in the value of free services which are supported by personalized ads. However, we continue to explore options to ensure we comply with evolving regulatory requirements,” a Meta spokesperson said in a statement to CBS MoneyWatch.
