Other Technology | September 5, 2023
Meta could launch paid versions of Facebook and Instagram in Europe. A report from The New York Times mentions that the tech giant is considering offering an ad-free paid version for those living in the European Union. With this move, the company would address the concerns of regulators who have been sanctioning it for months.
According to sources, the paid version of Facebook and Instagram would allow European users to use the apps without ads. Paid models have been considered previously, but for a different reason. A year ago, it was reported that Meta was exploring the possibility of offering a freemium model on Facebook, WhatsApp, and Instagram as a solution to a hypothetical scenario in which advertising revenue plummeted.
Things changed in January 2023 when the Irish Data Protection Commission fined Meta €390 million. The company had forced users to accept personalized ads within the terms of Facebook and Instagram. By accepting the terms of both apps, people gave consent for Meta to collect their data for targeted advertising, violating GDPR.
The new paid version of Facebook and Instagram would resolve this issue, as Meta would not use its usual practices to display ads. Those living in Europe who pay for the service will be able to use the apps without dealing with ads every two or three posts. The subscription model will be optional, so those who don’t want to pay a penny to Mark Zuckerberg will have the option to continue using the free versions.
For now, the availability of these applications or the monthly fee that users will need to pay is unknown.
One of the most common rumors on Facebook and WhatsApp is the one warning that Mark Zuckerberg will charge for using them if you don’t share the message 40,000 times. Although paid versions of the apps have always been on users’ minds, they are the last option on Meta’s list for generating revenue.
The company has always favored the free ad-supported model, which brings in millions in revenue every quarter. Meta is the latest company to resist launching a membership to avoid advertising on its platforms. The data of hundreds of millions of users meets shareholders’ expectations, but not for much longer.
After the implementation of the General Data Protection Regulation and the new Digital Services Act, tech companies have been forced to change their strategies. Unlike the United States and other regions, the European Union has put a stop to predatory practices that profit from people’s data.
Just in May, Mark Zuckerberg’s company was fined €1.2 billion for violating users’ privacy. The European Data Protection Board severely punished Meta for the misuse of customer data in targeted ads and gave them six months to resolve it.
The paid versions of Facebook and Instagram may serve as a temporary solution to calm regulators’ concerns. Currently, Meta is unable to launch Threads in Europe as its data handling practices violate existing legislation.
