Meta’s Instagram, Facebook to charge EU users for ad-free service

Reuters

4th Oct 2023

Meta Platforms is looking to introduce ad-free subscription plans for Instagram and Facebook users in Europe, two people familiar with the matter said on Tuesday.

Several pricing plans were discussed, but the $10.49 per month plan is the most feasible, one of them said, while the other source said it will be implemented in the coming months.

The proposal is an attempt by Meta to comply with European Union regulations that threaten to curb its ability to personalize ads for users without their consent and hurt its major revenue source.

Offering a choice between a free, ad-supported plan and a paid subscription might lead to users opting for the former, helping Meta comply with regulations without affecting its ad business.

On mobile devices, the price for a single account would jump to roughly $13.6 because Meta would factor in commissions charged by Apple’s and Google’s app stores, the second source said.

In comparison, Netflix charges 7.99 euros for a basic subscription plan, while Alphabet’s YouTube Premium costs about 12 euros and Spotify’s Premium service is priced at about $11.51.

Meta was fined $408 million earlier this year by Ireland’s Data Privacy Commissioner, and told it cannot use the so-called “contract” as a legal basis to send users ads based on their online activity.

The social media company subsequently said it intended to ask users in the EU for their consent before allowing businesses to target ads in order to address evolving regulatory requirements in the region.

A Meta spokesperson said the company believes in “free services which are supported by personalized ads,” but is exploring “options to ensure we comply with evolving regulatory requirements.”

Meta, Ireland’s Data Protection Commission, and the European Commission declined to comment.

• Reporting by Supantha Mukherjee in Stockholm, Akash Sriram and Jyoti Narayan in Bengaluru; Editing by Sonia Cheema, Arun Koyyur and Varun H K, of Reuters.