According to a report from the New York Times, Meta Platforms is exploring the option of introducing paid, ad-free versions of Facebook and Instagram for users in the European Union (EU), a step taken amid increasing regulatory scrutiny.
The proposed subscription model would allow users to access both platforms without advertisements. Meanwhile, Meta would maintain its existing free versions, which continue to incorporate ads within the EU, as noted in the report citing three sources familiar with the company’s plans.
Implementing paid subscriptions could serve as a strategy for Meta to address growing privacy concerns expressed by EU regulators, providing users an alternative to its traditional ad-supported services that depend on the analysis of user data.
A request for comment from Meta was not immediately answered by Reuters.
Meta has been under intense scrutiny from EU antitrust regulators and faced a setback in July when it lost a legal battle related to a 2019 German ruling prohibiting the collection of user data without explicit consent.
The cost of the proposed paid versions remains unclear, as mentioned in the NYT report.
The social media giant has been under the EU’s watch, facing fines of NOK 1 million (approximately Rs. 77,51,000) daily since August 14 for violating users’ privacy by improperly collecting data for targeted advertising. Currently, Meta is seeking a temporary injunction against the order issued by Norway’s data protection authority, which enforces the daily fines for a duration of up to three months. On July 17, the regulator, Datatilsynet, stated that penalties would be applied if the company failed to rectify the identified privacy violations.
© Thomson Reuters 2023
