Meta Considers Charging European Users for Ad-Free Instagram

Meta, the parent company of Instagram, is reportedly considering a new proposal that would charge European users for an ad-free version of the popular social media platform. According to the Wall Street Journal, Meta’s plan involves charging users approximately $14 per month on mobile devices and up to $17 on desktop if they do not agree to allow the company to use their personal data for targeted ads.

The proposed subscription, named “subscription no ads” or SNA, is Meta’s attempt to navigate the strict privacy rules in the European Union. These rules require Meta to obtain users’ consent in order to display targeted ads, which could potentially impact the company’s advertising revenue.

To address concerns and seek approval, Meta has reportedly engaged in discussions with digital-competition regulators in Brussels, privacy regulators in Ireland, and other EU privacy regulators. However, it remains unclear whether regulators believe Meta’s proposal is a sufficient workaround, and they may request the company to propose a more affordable offering.

While the privacy rules do not apply to the United States, Meta CEO Mark Zuckerberg previously announced a paid verification subscription service called Meta Verified. This service allows users on Meta’s Instagram and Facebook platforms to submit their government ID and receive a blue verification badge, enhancing authenticity and security.

It is important to note that Meta has not yet responded to CNBC’s request for comment regarding the proposed ad-free subscription for European users. Additionally, it is unlikely that Meta will introduce this subscription model in the United States.

As Meta continues to navigate privacy regulations, users can expect changes in the coming months. The company’s aim is to strike a balance between user privacy and maintaining advertising revenue. Stay tuned for further updates on this evolving situation.