Berliner Boersenzeitung - Facebook, Instagram to offer paid ad-free Europe subscriptions

Tech titans now face a growing European Union legal arsenal, which was designed to curb how they do business online and demands better privacy protection for users.

Firms like Meta use user data to serve highly targeted ads, and they have struggled to comply with the strict rules of the EU's 2018 data privacy regulation (GDPR).

Europe has hit Meta with huge fines over privacy and how it uses European users' data.

From November European users can subscribe for a fee of 9.99 euros ($10.50) a month on the web, or 12.99 euros on mobile phones using iOS and Android systems, Meta said.

Subscriptions would apply to an individual's linked Facebook and Instagram accounts.

Asked by AFP, there was no immediate response from the European Commission as to whether to subscription option would assuage Brussels' privacy concerns.

From March 1, 2024, there will be an additional fee of six euros a month for access on the web and eight on smartphones for each additional account listed.

The EU's rules are a risk to Meta's lucrative revenue from advertising since they seek to curb its use of users' data without consent.

Meta's latest decision demonstrates the far-reaching impact of the EU's laws, shaking up the previous free model.

Meta believes that taking this move to offer subscriptions will assuage EU regulators' concerns over its data collection and how ads are targeted.

Users will still be able to enjoy the platforms for free with advertising, but the information of those who pay "will not be used for ads", Meta said.

Only people aged 18 and over will be able to buy subscriptions.

"The option for people to purchase a subscription for no ads balances the requirements of European regulators while giving users choice and allowing Meta to continue serving all people in the EU, EEA (European Economic Area) and Switzerland," it said.

The EEA includes the 27's member states and Iceland, Liechtenstein and Norway.

- 'Committed' to compliance -

Meta also pointed to the EU's landmark Digital Markets Act (DMA), which aims to curb how big tech does business online, with stricter rules on advertising.

The rules will apply from March 2024.

Digital giants like Meta also have to adhere to stricter rules on advertising under another law known as the Digital Services Act (DSA) which demands greater policing of online content.

"We respect the spirit and purpose of these evolving European regulations, and are committed to complying with them," Meta said.

It also said it was "exploring how to provide teens with a useful and responsible ad experience". The DSA bans targeted advertising for children aged 13 to 17.

Ireland, acting on behalf of the EU, has hit Meta with many eye-watering fines.

Irish regulators hit Meta in May with a record 1.2-billion-euro fine for transferring EU user data to the United States in breach of a previous court ruling.

Norway, which is not an EU member, in July threatened Meta with a $100,000 daily fine over how it used the personal information of users for targeted advertising.

Meta has taken a cautious approach to compliance and has even refused to roll out Threads -- its challenger to X, formerly known as Twitter -- in the EU.

The company said it wanted to wait for regulatory clarity before launching in the bloc.

(S.G.Stein--BBZ)