“Window” to avoid fines from the European Union for sending personalized ads
Meta Platforms is working out options to introduce a subscription scheme, complete with ad-free access, for Instagram and Facebook users in Europe, a source with knowledge of the matter said.
Although various pricing schemes are being discussed, the proposal for a monthly subscription of 10 euros is the prevailing one, according to the source. The proposal is an attempt by Meta to circumvent European Union rules, which threaten to limit its ability to tailor ads to users without their consent, undermining its main source of revenue.
Offering a choice between a free, ad-supported scheme and an ad-free subscription scheme may steer users towards the latter, helping Meta to comply with European regulations without undermining the advertising market it draws from income. Meta’s new plan is more expensive than the subscription to the Netflix network, which charges €7.99 for its basic package.
On mobile devices, the price of the individual account will jump to about 13 euros, because Meta will factor in the fees charged by the app stores of Apple and Google, according to a report in the Wall Street Journal. In February, Meta was fined €390 million by Ireland’s Privacy Commissioner and told it cannot use the so-called “contractual” legal basis to send users ads based on their online activity, which which affects the company’s business model.
Meta subsequently announced its intention to ask users in the European Union for consent before allowing businesses to serve ads, in order to meet ongoing regulatory requirements in the region. A Meta spokesperson said the company believes in free services supported by personalized advertising, but is considering “options to ensure compliance with ongoing regulatory requirements.”
