Meta Platforms Inc. META has reportedly been exploring a subscription plan for European users, offering an ad-free option to use Instagram and Facebook on the phone at a monthly cost of $14 as a potential solution to comply with EU regulations on personalized ads.
What Happened: The proposed subscription, called “SNA” or Subscription No Ads, would give users a choice between continuing to use Instagram and Facebook for free with personalized ads or paying a monthly fee, reported the Wall Street Journal, citing people familiar with the matter.
Under this plan, users on the desktop could expect to pay approximately €10 (equivalent to about $10.50) per month for access to Facebook or Instagram, with an additional charge of roughly €6 for each linked account.
However, on mobile devices, the cost would increase to around €13 (equivalent to about $13.60) monthly, factoring in commissions from Apple’s and Google’s app stores on in-app payments.
This reported shift towards a subscription model represents a significant departure from Meta’s long-standing stance of offering free core services supported by advertising.
Previously, in 2018, Meta CEO Mark Zuckerberg took a potshot at rival Apple by saying, “You don’t need thousands of dollars to connect with people who use our services.”
At the time, Tim Cook voiced his concerns over extensive data collection practices and advocated for implementing a U.S. privacy law modeled after European regulations.
Why Is Meta Taking Such A Decision? According to the report, Meta’s intention behind this possible development is its desire to navigate the demands of EU regulators, who require companies to get consent before using behavioral data for personalized advertising.
However, it remains to be seen whether regulators will find Meta’s proposed pricing reasonable.
It is worth noting that in May, Meta faced a substantial $1.3 billion fine for breaching the EU’s data privacy regulations. The company then offered European users the option to opt out of targeted ads, but the process involved a cumbersome and lengthy form.
The new proposal seeks to simplify matters by presenting users with a straightforward “yes” or “no” question before displaying ads.
Why It’s Important: In the U.S., privacy-conscious users should not expect a similar ad-free option anytime soon, as Meta’s proposal primarily addresses EU regulatory demands, the report highlighted.
Having said that, Zuckerberg has previously expressed openness to paid services in response to privacy concerns. Earlier this year, Meta introduced a paid user-verification service akin to Elon Musk’s paid Twitter Blue plans.
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