Meta Proposes Ad-Free Charging Plans for European Users

Meta, the parent company of Instagram and Facebook, has proposed a new ad-free charging plan for its European users. The move comes as Meta seeks to address European Union regulations regarding personalized advertising. While the plan is currently under review by EU regulators, Meta aims to implement the charging model in the coming months exclusively for European users.

This potential introduction of a monthly fee marks a significant departure from Meta’s traditional business model, which has always relied on advertising revenue to support its free services. The company’s decision reflects the increasing pressure it faces to comply with EU demands for users to have the option to opt out of personalized advertising based on their data.

According to sources familiar with the matter, the proposed pricing for the ad-free offerings would be €10 per month on desktop for a Facebook or Instagram account, with an additional €6 for each linked account. On mobile devices, the base price would rise to €13 per month. However, Meta has neither confirmed nor denied these ad-free charging plans when approached by Barron’s.

A Meta spokesperson stated, “Meta believes in the value of free services supported by personalized ads. However, we continue to explore options to ensure we comply with evolving regulatory requirements.” The company has faced challenges in adhering to stricter EU rules surrounding user data usage, including a $1.3 billion fine earlier this year for sharing user information with the U.S. Meta has also refrained from launching its Threads microblogging platform in the EU due to the bloc’s technology regulations.

While Meta’s proposal is a step towards addressing EU concerns, it is unlikely to resolve the ongoing regulatory discussions. EU regulators may argue that the ad-free pricing is too high and demand a lower price or the availability of a free version with the ability to opt out of personalized advertising. Such outcomes could test Meta’s business model and potentially raise questions about its future in Europe.

In conclusion, Meta’s proposal for ad-free charging plans for European users represents its latest effort to navigate EU regulations. As the company continues to explore options, the outcome of these discussions will have significant implications for Meta’s operations and the future of personalized advertising in the European market.