In light of increased regulatory pressure, Meta, the parent company of Facebook and Instagram, has recently revealed plans to introduce an ad-free subscription option for users based in Europe. This decision follows a series of significant challenges faced by the tech giant from European regulators this year.
The ad-free subscription, available to residents of the European Union, which comprises 27 countries, the European Economic Area, and Switzerland, will cost 9.99 euros (approximately $11) per month when accessed via the web, or 12.99 euros (about $14) per month on iOS and Android devices. What’s more, this fee will cover all linked accounts for a user. However, starting from March 1, 2024, an additional charge of 6 euros per month on the web and 8 euros per month on apps will be imposed for each of a user’s extra accounts.
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This strategic move by Meta comes after the Irish data protection authority slapped the company with a hefty 390 million euro fine in January. The fine was a result of Meta’s violations of Europe’s stringent privacy law, the General Data Protection Regulation (GDPR). Specifically, the authority found that users were required to accept the terms of service, thereby permitting the use of their data for targeted advertisements, in order to access Meta’s platforms, a practice deemed as a breach of GDPR.
Meta attempted to challenge the ruling but was unsuccessful. Subsequently, the company shifted its approach to a “consent” model, where users were given the choice to opt in or out of targeted ads that relied on data collected from its platforms.
In a blog post, Meta explained the introduction of the subscription service as an effort to address regulatory concerns. They stated, “To comply with evolving European regulations, we are introducing a new subscription option in the EU, EEA, and Switzerland.” In November, users in these regions will have the option to continue using the personalized services with ads or subscribe to an ad-free experience. While subscribed, user information will not be utilized for advertising purposes.
Meta emphasized that this subscription option for European users “balances the requirements of European regulators while giving users choice and allowing Meta to continue serving all people.” The European Court of Justice, the EU’s highest court, played a pivotal role in this development. In a recent ruling, the court recognized that a subscription-based model, like the one introduced by Meta, constitutes a valid form of consent for an ad-funded service. This ruling provided Meta with a strong basis for offering the ad-free subscription to users in Europe.
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