Facebook and Instagram mull over fees for ad-free services in EU.
3 min read
Insiders indicate Meta’s platforms are considering monthly fees of €13 (mobile) and €17 (desktop).
Meta, led by Mark Zuckerberg, is considering introducing a €13 (£11) monthly fee for EU users to access an ad-free version of Instagram or Facebook on mobile devices. This move is prompted by increased regulatory scrutiny on data usage.
Additionally, insiders suggest Meta is contemplating a €17 charge for an ad-free experience on Instagram and Facebook on desktop devices. For users wanting both apps without ads on smartphones, the cost could be approximately €19 per month.
This consideration by the social media giant follows a July decision by the European Court of Justice, ruling that Facebook cannot justify using personal information for personalized ads, its primary revenue source, without prior consent under Europe’s General Data Protection Regulation (GDPR). The court proposed subscription charges as an alternative for accessing an ad-free version.
Meta is in talks with the Data Protection Commission of Ireland, overseeing EU operations, and engaging with European officials in Brussels to further explore these plans.
On Monday, reports surfaced that TikTok was preparing to trial a subscription service offering an ad-free experience for $4.99 per month in an undisclosed English-speaking market outside the United States.
As reported by the Wall Street Journal, Meta’s ad-free initiative, referred to as SNA, or “subscription no ads,” would give users the choice of accessing Facebook or Instagram for free with personalized ads or paying for ad-free versions.
This plan might be implemented next month, as Meta has until the end of November to comply with the European Court of Justice’s ruling. However, regulatory authorities are examining the pricing structure to assess affordability for users who prefer avoiding targeted ads.
A Meta spokesperson stated, “Meta values free services sustained through personalized advertising. Nonetheless, we are actively exploring options to ensure compliance with evolving regulatory mandates.”
Max Schrems, a vocal critic of Meta’s data handling practices, expressed his intent to strongly challenge the subscription fee proposals, asserting that such charges equate to paying for fundamental rights. He emphasized the unacceptability of selling fundamental rights and suggested that introducing this concept into data protection rights represents a significant departure.
Meta’s founder and CEO, Mark Zuckerberg, assured during a Senate hearing that “there will always be a free version of Facebook.” However, he also indicated openness to “certainly consider” the possibility of a paid service.
This year, Meta entered the realm of paid accounts by introducing a subscription service offering benefits like a verified account and direct customer support, though it did not eliminate ads.
The European Union has recently enacted comprehensive regulations overseeing the conduct of major tech companies, particularly those involving the use of personal data for targeted advertising. According to the EU’s Digital Markets Act legislation, Meta’s platforms will need clear and explicit consent from users before tracking activities for advertising purposes. Companies subject to this legislation are already adjusting, with European Union users presented with the option to consent to tracking their behavior on mobile devices for services.
This legislation complements the Digital Services Act, effective since August 25th, designed to combat online hate, child sexual exploitation, and disinformation, marking the first-ever set of laws governing online content.
