Meta Platforms has begun working towards introducing ad-free subscription plans for Instagram and Facebook users in Europe.
A source from the company stated that several pricing plans have been discussed, but the 10 euros ($10.49) per month plan is the most feasible. Another source revealed that the subscription plan will be implemented in the coming months.
The proposal is Meta’s attempt to comply with European Union regulations that threaten its ability to personalize ads for users without their consent, ultimately hurting its major revenue source.
The company believes offering users a choice between a free, ad-supported plan and a paid subscription might lead to them choosing the former, helping Meta comply with regulations without affecting its ad business.
The subscription price would reportedly hover around 13 euros on for mobile users, due to Meta factoring in commissions charged by Apple’s App Store and Google’s Play Store. In comparison, Netflix charges 7.99 euros for a basic subscription plan. Alphabet’s YouTube Premium costs about 12 euros, while Spotify’s Premium service comes in at about 11 euros.
Meta suffered a 390 million-euro fine earlier this year by Ireland’s Data Privacy Commissioner, due to the company violating privacy rules, and sending users ads based on their online activity.
Following the fine, the Facebook and Instagram parent company has said it intends to ask users in the EU for their consent before allowing businesses to target ads in order to address evolving regulatory requirements in the region.
A Meta spokesperson said the company believes in “free services which are supported by personalized ads,” but is exploring “options to ensure we comply with evolving regulatory requirements.”