Bowing to pressure from European Union regulators, and following a $400 million fine issued in January for breaking EU digital advertising rules, Meta will now offer paid subscriptions to most of its European Facebook and Instagram users that accommodates ad-free use of the social media platforms.
While free, ad-supported access to Facebook and Instagram will remain available to European customers, Meta announced optional ad-free subscriptions of about $10 per month for web users and about $14 per month for those who access their Facebook or Instagram accounts via mobile devices.
“We believe in an ad-supported internet, which gives people access to personalized products and services regardless of their economic status,” Meta officials wrote in a Monday blog post. “It also allows small businesses to reach potential customers, grow their business and create new markets, driving growth in the European economy. And like other companies we’ll continue to advocate for an ad-supported internet, even with our new subscription offering in the EU, EEA and Switzerland.”
The vast majority of Meta’s revenue is generated through paid advertising displayed to users of its products, which include Facebook, Instagram and Messenger. Last year, Meta generated over $113 billion in total revenues, according to Statista. In its most recent earnings filings, Meta reported over $34 billion in revenues in the third quarter of 2023, an increase of 23% over the same period last year, according to the company.
While the new subscription offer may help Meta meet current EU rules on digital advertising practices, some advocates say the move doesn’t go far enough to protect consumers.
Legal challenges from Austrian privacy advocate Max Schrems helped lead to the new ad-free subscription offerings, according to The New York Times, but Schrems said the changes still don’t bring Meta into compliance with EU regulations and he has vowed to launch a legal challenge.
“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,” Schrems told the Times. “We are very skeptical if this is compliant with the law.”
For now, the Facebook and Instagram ad-free subscription options are limited to users in the European Union, European Economic Area and Switzerland.