Meta Might Allow EU’s Instagram and Facebook Users to Pay so They Can Avoid Ads
Key takeaways
- Meta may offer a paid-for, ad-free service in the EU to comply with regulation
- The EU has concerns over the company’s data protection boundaries
- The move comes as Meta confirms it’s closing down Facebook News in some EU countries
How’s a Big Tech company meant to react to increasing government scrutiny? By charging its users and boosting its bottom line, of course. Meta is allegedly considering paid versions of Instagram and Facebook for EU residents as a workaround for regulatory purposes — but users won’t be happy about the change. Here’s the lowdown.
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What’s the latest with Meta?
If you’re in the EU and use Facebook or Instagram (or, most likely, both), you might have a paid subscription for the services coming to you soon. Those who pay for the subscriptions won’t see any ads in a bid to combat privacy concerns from the EU about harvesting people’s data. It’s unknown how much the paid tiers might cost.
Don’t want to pay? Don’t sweat it. Meta will still offer ad-supported versions of the platforms, though with the EU’s new Digital Services Act now in effect, we’re not sure how much longer that’ll last.
The Big Tech behemoth recently came under fire from the EU as Meta lost its fight against a German curb order to stop collecting user data without their consent, with Europe’s top court calling the practice an abuse of market power.
What was the market reaction?
Meta closed 1% down on Friday when the news was first reported. So far, the share price has grown 139% this year since Meta CEO Mark Zuckerberg introduced his so-called ‘year of efficiency’.
European users might have some more changes on the way. Announced today, Meta confirmed it would shut down its Facebook News service in the UK, France and Germany. The move means Meta can stop paying for news service access in these countries after the personalized news service failed to launch in these regions.
“As a company, we have to focus our time and resources on things people tell us they want to see more of on the platform, including short-form video,” Meta said in a statement.
The bottom line
The EU has taken a much stricter stance with Big Tech on data protection, and its new Digital Services Act means that social media companies need to buck up their act. We’re not exactly sure how the average Meta user benefits from a paid-for subscription service, but we’re sure Meta will provide some exclusive benefits to sweeten the deal.
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