According to The Wall Street Journal, Meta is considering charging its European users approximately $14 per month for an ad-free version of Instagram if they choose not to let the company use their personal data for targeted ads.
The idea, which would cost users roughly $14 per month on mobile devices and up to $17 on a laptop, is Meta’s attempt to cover the European Union’s strict privacy restrictions. The rules will require Meta to obtain users’ permission before showing them customized advertisements, which will most certainly reduce the company’s advertising revenue.
As per the report, Meta has discussed its plan with digital competition officials in Brussels, privacy regulators in Ireland and other EU privacy regulators. The plan is reportedly named “subscription no ads,” or SNA, and it wants to start rolling it out in the coming months.
It is unclear whether regulators feel Meta’s proposal is a sufficient workaround, as per reports, and they could ask that the company propose a cheaper offering.
“Meta believes in the value of free services which are supported by personalized ads. However, we continue to explore options to ensure we comply with evolving regulatory requirements. We have nothing further to share at this time,” a Meta spokesperson told CNBC Tuesday.