Avoid EU laws
In a major shift, a leading tech company confirmed plans to offer a version of its social networks that blocks advertisements starting in November. The move targets users across the European Union who consume Facebook and Instagram through desktop browsers and mobile devices alike, with pricing set for both platforms. The WSJ reported that desktop access would cost 9.99 euros per month, while mobile access on iOS or Android would be priced at 12.99 euros per month. The new plan begins with existing accounts and expands over time to new accounts with a fee of six euros per month for desktops and eight euros per month for mobile devices as of March 1, 2024, applicable to all manufacturers including Apple and others.
As a result, some Instagram and Facebook users could pay more than 21 euros monthly and up to 156 euros annually in the coming year. The price point under this plan would exceed typical premium options on other services such as Netflix at 17.99 euros per month or the prior offering from X at 16 euros per month.
The decision follows a December meeting with the European Commission and comes after the European Data Protection Board ruled that Meta cannot show personalized ads without user consent based on tracking. Approval for personalized advertising must be obtained before such ads can appear to users. The Brussels decision represents a setback for Meta whose revenue heavily depends on advertising generated through personal data. In 2021 Meta reported advertising revenue of nearly 115 billion dollars, which constituted about 97.5 percent of total revenue for the year.
Mark Zuckerberg and the leadership team spoke about the plan as a way to give users more choice while meeting regulatory requirements. The company stressed that this alternative model would be offered if necessary to comply with regulator demands and to continue serving all users who prefer not to see personalized ads. No final regulatory ruling has closed the door on further court action. The European Center for Digital Rights NOYB has announced plans to challenge Meta’s pay-for-privacy approach and is expected to take the matter to the Court of Justice of the European Union for a definitive decision.
Beyond EU residents, users in Switzerland, Norway, Iceland, and Liechtenstein will still be able to access Facebook and Instagram for free, with Meta continuing to promote its advertising-supported services in those markets.