Meta eyes ad-free service in Europe to abide by rules

Meta Platforms aims 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 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 EU regulations that threaten to curb its ability to personalise 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.

Meanwhile, Netflix’s streaming subscription, which charges €7.99 for a basic plan, while Alphabet’s YouTube Premium costs about €12 and Spotify’s Premium service is priced at about €11.

On mobile devices, the price for a single account would jump to about €13 because Meta would factor in commissions charged by Apple’s and Google’s app stores, the second source said.

The social media company was fined €390m earlier in 2023 by Ireland’s data privacy commissioner and told it cannot use the “contract” legal basis to send users ads based on their online activity.

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

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

Ireland’s Data Protection Commission declined to comment while the European Commission did not respond to a request for comment.