Meta introduces ad-free subscription plan for European users
Investing.com | Editor Oliver Gray
Published Oct 06, 2023 12:25AM ET
Meta Platforms (NASDAQ:META) announced on Friday plans to initiate a €10 ($10.49) monthly ad-free subscription for Instagram and Facebook users in Europe. This move comes as a response to the European Union regulations that limit ad personalization, which poses a threat to Meta's primary revenue source.
The company is offering two options for users - a free, ad-supported plan or a paid one. The price of the paid subscription could potentially rise to €13 on mobile devices due to commissions imposed by app stores such as Apple (NASDAQ:AAPL)'s and Google (NASDAQ:GOOGL)'s.
This strategic shift follows a significant €390 million fine Meta received from Ireland's Data Privacy Commissioner over its ad targeting practices, which were based on a "contract". In order to comply with evolving regulatory norms, Meta will now require user consent for targeted ads.
The decision to introduce a subscription model or continue with a free ad-supported service aims to safeguard Meta's ad personalization revenue stream. A spokesperson for Meta stated that these changes align with evolving regulatory requirements and may encourage more users to opt for the ad-supported choice.
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