Meta Could Charge EU Users for Ad-Free Instagram and Facebook

• Meta could offer subscription versions of Instagram and Facebook in Europe.
• Ad-free tiers would cost $10.50 on desktop and $14 on mobile, according to the Wall Street Journal. 
• The company is attempting to comply with an EU crackdown on personalized advertising.

Meta has a new plan to navigate the European Union’s tough new ad privacy rules – charge users $14 a month.

The tech giant is considering getting customers in Europe to pay monthly subscription fees to use Instagram and Facebook if they don’t agree to let Meta use their data to serve them ads, according to a report in The Wall Street Journal.

Users who pay the subscription fee will be able to use Meta’s products without ads.

The monthly fee would start at around €10 ($10.50) for a desktop Facebook or Instagram account, but would rise to around $14 for accounts on mobile devices thanks to the commissions charged by Apple and Google’s app stores.

The new subscription tiers, which could roll out in the next few months, are an attempt to comply with the EU’s crackdown on personalized advertising, according to The Journal.

The bloc’s regulators ruled last year that Meta must give users the option to opt out of personalized ads based on their activity on their platforms.

The suggested subscription model could yet change, as it is not clear whether EU regulators will deem the new plan as compliant with EU laws.

Showing ads based on user engagement is an integral part of Meta’s business model, but it’s one that has come under increasing pressure over the past few years.

Apple introduced the ability for users to opt out of ad-tracking in 2021, a change that Meta said would cost it $10 billion in lost revenue.

The potential subscription tiers are the latest sign of how Europe’s tough regulatory approach is forcing tech giants to make major changes to their businesses.

Meta was handed a $1.3 billion fine by European regulators for data privacy violations in May, and the company also delayed the launch of its Twitter competitor Threads in Europe over regulatory uncertainty.

“Meta believes in the value of free services which are supported by personalized ads,” said a Meta company spokesperson.

“However, we continue to explore options to ensure we comply with evolving regulatory requirements,” they added.