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Meta, the parent company of Instagram, is reportedly considering charging a monthly subscription fee to European users who do not want personalized ads.

According to the US daily The Wall Street Journal (WSJ) on the 3rd (local time), Meta announced in a meeting last month with regulatory authorities in Ireland, where its European headquarters is located, and the European Union (EU) that it plans to launch a product called 'SNA' (Subscription No Ads) for European users within the next few months. This information was also shared with other EU data protection regulators for feedback.

Meta 'toying' with charging European users about 14,000 KRW per month

Users can choose between accessing Meta's Instagram and Facebook for free while viewing personalized ads or paying to use the services without ads.

The fee is approximately 10 euros (about 14,000 KRW) per month when paid via desktop for Facebook or Instagram use, with an additional connected account costing about 6 euros (about 8,500 KRW) each. If both options are used, the total is 16 euros (about 23,000 KRW) per month.

When paying via mobile, the fee is set at 13 euros (about 18,500 KRW) per month due to in-app payment methods.

A way to circumvent EU data privacy regulations... "No response yet from the EU"

Previously, Meta faced fines or lawsuits in Ireland and Germany for not properly obtaining prior consent when collecting personal data for advertising. As a result, Meta must obtain new consent from all users by the end of November according to a ruling by the European Court of Justice.

Meta's strategy is interpreted as an attempt to circumvent EU regulations.

The media explained that this is presented as one way to meet the EU regulators' demand to obtain user consent before processing data for personalized advertising.

Europe is the second most profitable region after North America, accounting for 10% of total advertising revenue. As of the first half of the year, there are 258 million Facebook users and 257 million Instagram users within the EU.

However, it is uncertain how EU regulators will respond to Meta's plan. They may consider it compliant with EU regulations or may require that a cheaper or free version without personalized ads be offered.

A Meta spokesperson said, "We believe in free services supported by personalized ads, but we are exploring options that can comply with evolving regulatory requirements."

The EU Commission and the Irish Data Protection Commission, which are responsible for related regulations, have not issued immediate comments.

Meanwhile, not only Meta but also X (formerly Twitter) is considering switching to a paid model. Elon Musk, who acquired X, stated in a conversation with the Israeli Prime Minister in September that "we are creating a policy to charge a small monthly subscription fee for using X." This is interpreted as a response to the fact that X Premium (formerly Twitter Blue), which allows users to purchase verified accounts, is insufficient to cover losses.

This content was produced with the assistance of AI translation services.