Photo: ASSOCIATED PRESS
‘EU imposes a hefty €1.2 billion fine on Meta for transferring EU citizens’ data to US servers, adding to a string of recent penalties.’
Meta, the parent company of Instagram and Facebook, is considering introducing a paid subscription option for users in Europe, according to a report by The New York Times. The move comes as Meta seeks to address the impact of European Union (EU) regulations on its data-collection methods, which have affected its revenue streams. Currently, advertising in the EU accounts for 10% of Meta’s total revenue.
If implemented, this would be a departure from Meta’s traditional model of providing a single free platform supported by advertising and data collection. The company intends to continue offering free ad-supported versions of Facebook and Instagram in the EU, alongside the new ad-free tiers. However, the specific launch date and pricing details for the paid subscription option remain unknown.
Insiders familiar with the matter, as cited by The New York Times, believe that offering an ad-free variant could help allay concerns raised by European regulators, even if the uptake is limited. They suggest that this optional tier could serve Meta’s interests in the region.
The introduction of an ad-free option for European users would highlight a significant divergence between consumer tech markets in the EU and the US. Meta and other social media platforms have had to adapt their strategies in response to regulations such as the General Data Protection Regulation (GDPR). In May, Meta was fined €1.2 billion for transferring EU citizens’ data to US-based servers. Additionally, the company faced a €265 million fine in 2022 for its failure to prevent the scraping and public posting of millions of Facebook users’ mobile numbers and other data.
Anu Bradford, a law professor at Columbia University, commented that these developments demonstrate how tech companies comply with digital regulations in the EU, indicating that they are still subject to government oversight.