On Tuesday, two sources indicated Meta Platforms (META.O) may provide ad-free Instagram and Facebook subscriptions in Europe. One insider stated the 10 euro ($10.49) per month plan is the most practicable, while the other suggested it will be implemented in the next months.
Meta’s suggestion is an attempt to comply with EU legislation that might limit its capacity to customize advertising without agreement and undermine its main revenue stream.
Users may choose the free, ad-supported plan over the premium one, enabling Meta to comply with rules without hurting its ad revenue.
Netflix’s basic package costs 7.99 euros, Alphabet’s (GOOGL.O) YouTube Premium costs 12 euros, and Spotify’s (SPOT.N) Premium costs 11 euros. The second source stated Meta would take in Apple and Google app store charges, raising the price of a single account on mobile devices to 13 euros.
Ireland’s Data Privacy Commissioner penalized Facebook 390 million euros earlier this year, forbidding it from using the “contract” legal basis to send consumers adverts based on their online behavior.
Meta later announced it would seek EU users’ approval before allowing firms to target advertising to comply with changing regulations.
A Meta representative said the business supports “free services which are supported by personalized ads” but is considering “options to ensure we comply with evolving regulatory requirements.”
Meta, Ireland’s Data Protection Commission, and the European Commission refused Reuters’ request for comment.