Meta to offer ad-free Facebook and Instagram subscriptions in Europe

Meta Platforms Inc. will offer users in Europe ad-free access to Facebook and Instagram for a subscription fee after courts in the region began cracking down on the way social media companies treat data. Also read: Meta sees ad revenue soar Starting in November, users will be able to subscribe to the social media sites for €9.99 ($10.57) per month on the web or €12.99 per month via Apple Inc.’s and Android’s mobile operating systems, the company said in a statement on Monday. The subscription services will be offered to anyone in the European Union, Iceland, Liechtenstein, Norway and Switzerland. Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here The subscriptions are a reaction to increasing regulations around how user data is collected and used in Europe. In a blog post explaining the decision, Meta cited the EU Court of Justice’s decision that went against the company in July. The court said at the time that companies should consider offering an alternative service for customers who don’t want their data collected and sold to advertisers “if necessary for an appropriate fee.” “We’ll continue to advocate for an ad-supported internet, even with our new subscription offering in the EU, EEA and Switzerland,” the company said in the statement. “But we respect the spirit and purpose of these evolving European regulations, and are committed to complying with them.” Also read: Meta fined $414 million over ad targeting practices in EU The company’s shares rose as much as 1.9% to $302.40 in premarket trading before New York exchanges opened on Monday. The stock had closed at $296.73 on Friday. Meta will continue offering ad-supported services in these markets without an additional charge. While the subscription fees will initially cover all of a user’s accounts, starting in March, Meta will charge an additional €6 per month on the web and €8 per month on mobiles for each additional account. Big tech companies are making more changes to their European products to comply with increasing scrutiny from regulators. This is most prominent in the European Union where courts and data protection authorities are slapping companies with fines worth billions of euros for compliance with data protection rules, and new competition and content moderation rules are going into effect. Meta also decided not to launch its X rival, Threads, in the EU due to questions about how it can adhere to the EU’s Digital Markets Act, which prohibits major tech companies from sharing data between services. The company said that the new European subscription model has been “factored into” its most recent business outlook and guidance. —Bloomberg News Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here

Meta to offer ad-free Facebook and Instagram subscriptions in Europe

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