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regular-article-logo Thursday, 03 October 2024

Meta considering paid versions of Facebook and Instagram to have no advertising for users in EU

For nearly 20 years, Meta’s core business has centred on offering free social networking services to users and selling advertising to companies who want to reach that audience

Mike Isaac, Adam Satariano New York Published 02.09.23, 10:53 AM
A Meta sign outside its headquarters in Mountain View, California

A Meta sign outside its headquarters in Mountain View, California Reuters file picture

Meta is considering paid versions of Facebook and Instagram that would have no advertising for users in the EU, three people with knowledge of the company’s plans said, a response to regulatory scrutiny and a sign that how people experience technology in the US and Europe may diverge because of government policy.

Those who pay for Facebook and Instagram subscriptions would not see ads in the apps, said the people, who spoke on the condition of anonymity because the plans are confidential. That may help Meta fend off privacy concerns and other scrutiny from EU regulators by giving users an alternative to the company’s ad-based services, which rely on analysing people’s data, the people said.

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Meta would also continue to offer free versions of Facebook and Instagram with ads in the EU, the people said. It is unclear how much the paid versions of the apps would cost or when the company might roll them out.

A Meta spokesman declined to comment.

For nearly 20 years, Meta’s core business has centred on offering free social networking services to users and selling advertising to companies who want to reach that audience. Providing a paid tier would be one of the most tangible examples to date of how companies are having to redesign products to comply with data privacy rules and other government policies, particularly in Europe.

In July, the EU’s highest court effectively barred Meta 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.

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