ECONOMY

Navigating Privacy Regulations: Meta Explores Subscription Model for Ad-Free Experience in the EU

Meta, the parent company of Facebook, is reportedly exploring the possibility of introducing a subscription model for users in the European Union. The proposed model suggests a monthly fee of approximately 10 euros for users who wish to access the social network without advertisements. Additionally, there’s consideration of an extra 6 euros for users opting for the ad-free version of Instagram. This move is part of Meta’s strategy to align with stricter privacy regulations in the EU.

The suggested pricing structure is specifically for the desktop versions of Facebook and Instagram. For mobile apps, Meta is contemplating a fee of 13 euros per month, citing the commissions levied by Google and Apple through their app stores. Meta has put forth these proposals to privacy regulators in Ireland and the European Union. Notably, Meta intends to continue offering free versions of both platforms in the EU.

In the EU, Facebook and Instagram face more rigorous regulations concerning the collection of user data for personalized advertisements, which presently constitutes Meta’s primary revenue stream. To navigate these regulations and sustain revenue, Meta is considering the introduction of a paid alternative. While the concept of a subscription model was previously reported by The New York Times, the specific pricing details have only recently come to light.

Meta has stated that it is exploring various options to ensure compliance with evolving regulations. At the same time, the company emphasizes its commitment to providing free services supported by personalized advertisements. The Irish Data Protection Commission, responsible for overseeing Meta in the EU, is yet to respond, and the European Commission has not provided immediate comments on the matter.

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