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Meta to offer ad-free Instagram and Facebook subscriptions

Meta to offer ad-free Instagram and Facebook subscriptions

Meta to offer ad-free Instagram and Facebook subscriptions

Meta to offer ad-free Instagram and Facebook subscriptions

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  • Meta is considering charging users for an ad-free version of Instagram and Facebook in Europe.
  • Meta is expected to charge around 10 euros per month for the ad-free service.
  • This is comparable to the prices of other subscription services like Netflix and YouTube Premium.
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Two sources shared information about potential pricing plans, with one suggesting that the most practical option is a 10 euro ($10.49) per month plan, while the other mentioned that implementation is expected in the upcoming months.

Meta’s proposal is an effort to align with European Union regulations that could restrict its capacity to personalize ads for users without their consent, potentially impacting its primary source of revenue.

Providing users with a choice between a free, ad-supported plan and a paid subscription could result in many users selecting the free option. This approach could assist Meta in meeting regulatory requirements without adversely impacting its advertising business.

In comparison, Netflix offers a streaming subscription at 7.99 euros for a basic plan, while Alphabet’s YouTube Premium is priced at approximately 12 euros, and Spotify’s Premium service costs around 11 euros.

For mobile devices, the cost of a single account would increase to around 13 euros, as Meta would need to account for commissions imposed by Apple’s and Google’s app stores, according to the second source.

Earlier this year, the social media company faced a 390 million euro fine from Ireland’s Data Privacy Commissioner. Additionally, it was instructed not to utilize the “contract” legal basis for delivering ads to users based on their online behavior.

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Following this development, Meta announced its intention to seek consent from EU users before permitting businesses to target ads in order to align with the changing regulatory demands in the region.

A representative from Meta stated that the company firmly believes in “free services that are supported by personalized ads”, but is exploring “options to ensure we comply with evolving regulatory requirements”.

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Ireland’s Data Protection Commission declined to provide a comment on the matter, and the European Commission did not respond to a request for comment from Reuters.

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