Attempt by the company to bypass EU rules and enter the European market
Meta Platforms is working on options to introduce an ad-free subscription scheme for Instagram and Facebook users in Europe, a source with knowledge of the matter said.
Although various pricing schemes are being discussed, the proposal for a monthly subscription of 10 euros is the prevailing oneaccording to the source.
The proposal is an attempt by Meta to circumvent European Union rules that threaten to limit its ability to tailor ads to users without their consent, undermining its main source of revenue.s.
Offering a choice between a free ad-supported scheme and an ad-free subscription scheme may drive users towards the latter, helping Meta to comply with European regulations without harming the advertising market from which it derives revenue.
Meta’s new plan is more expensive than the subscription to the Netflix network which charges €7.99 for its basic package.
On mobile devices, the price of the individual account will jump to around 13 eurosbecause Meta will factor in the commissions charged by the Apple and Google app stores, according to a Wall Street Journal report.
In February, Meta was fined €390 million by Ireland’s Privacy Commissioner after it was told it cannot use its so-called “contractual” legal basis to send users ads based on their online activity, which hurts the company’s business model.
Meta then announced its intention to asks users in the European Union for consent before allowing businesses to target ads to meet ongoing regulatory requirements in the region.
A Meta spokesperson said the company believes in its free services supported by personalized advertising,” but is considering “options to ensure compliance with ongoing regulatory requirements.”
Source :Skai
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