Social media company Meta (formerly known as Facebook) will launch paid subscriptions for ad-free versions of both Instagram and Facebook from next month.
Social media company Meta (formerly known as Facebook) will launch paid subscriptions for ad-free versions of both Instagram and Facebook from next monthMeta said on Monday that it will introduce an advertisement-free subscription option for Facebook and Instagram for the first time beginning next month for users in Europe, a sign of how government pressure is leading large tech companies to change their core products.The social networking company said it was complying with
“evolving European regulations” by introducing the subscription option in the
European Union, Iceland, Liechtenstein, Norway and Switzerland. Starting in
November, users will be able to choose to continue using Facebook or Instagram
for free with ads, or to subscribe to stop seeing ads, Meta said.
The cost will range from 9.99 euros a month ($10.58) on the
web to 12.99 euros a month ($13.75) on iOS and Android devices, and apply to a
user’s linked Facebook and Instagram accounts. Starting on March 1, 2024, an
additional fee of 6 euros a month for the web version and 8 euros a month for
mobile access will apply for additional accounts.
Meta’s core business has long centered on offering free
social networking services to users and selling ads to companies that want to
reach that audience. Providing a paid tier illustrates how tech companies are
having to redesign products to comply with data privacy rules and other
government policies, particularly in Europe. Amazon, Apple, Google, TikTok and
others are also making changes to comply with new rules in the European Union,
which is home to roughly 450 million people across 27 countries.
To protect people’s privacy, the European Court of Justice,
the highest court in the E.U., effectively barred Meta in July from combining
data collected about users across its platforms — including Facebook, Instagram
and WhatsApp — as well as from outside websites and apps, unless it received
explicit consent from users. That came after a January decision by E.U.
regulators to fine Meta 390 million euros for forcing users to accept
personalized ads as a condition of using Facebook.
In its July decision, the European Court of Justice
indicated that offering a subscription service in Europe may be a way to comply
with the judgment, Meta said. A subscription can allow users to access the
platforms without having their personal data used to sell ads.
“We respect the spirit and purpose of these evolving
European regulations, and are committed to complying with them,” the company
said in a statement announcing the new paid tier on its website.
Meta added that while it was committed to keeping people’s
information private and secure, it believed in an “ad-supported internet” that
provides people with personalized products and services, while also allowing
small businesses to reach potential customers.
Max Schrems, a privacy activist in Austria whose legal
challenges targeting Meta helped lead to the product changes, said the
subscription offerings do not comply with the E.U. data privacy law, known as
the General Data Protection Regulation. He vowed to challenge it in court.
“If we move to a pay-for-your-rights system, it will depend
on how deep your pockets are if you have a right to privacy,” Mr. Schrems said.
“We are very skeptical if this is compliant with the law.”
Apart from Meta, Apple is expected by March to be required
to allow customers to download alternatives to its App Store for the first time
because of another E.U. law, called the Digital Markets Act. The Digital
Markets Act was passed last year to boost competition in the tech industry.
Google is also making changes to comply with the new law.
Last December, Amazon also made changes to its shopping
service to give third-party merchants access to more valuable real estate on
the company’s website, under terms of a settlement with E.U. antitrust
regulators.