Meta’s EU Paid Subscription: A Precursor to U.S. Data Privacy Changes?
Meta just announced the launch of a paid subscription service for Facebook and Instagram, initially targeting the European Union, the European Economic Area, and Switzerland. The subscription costs are €9.99 per month on the web and €12.99 per month on iOS and Android. And starting March 1, 2024, additional fees will be levied for linked accounts.
European jurisdictions have often been pioneers in legislating robust privacy measures, the effects of which eventually ripple across the Atlantic to influence U.S. policy and corporate actions. Believe it or not, this trend began in 1996 after a public outcry over the first use of the third party cookie. The most notable example is the General Data Protection Regulation (GDPR) in the EU, which has had a profound global impact since its implementation in 2018. The GDPR has influenced similar privacy regulations in the U.S., leading California to pass the CCPA, and has been a catalyst for ongoing federal data protection discussions.
By offering users a choice to opt out of ad targeting and data collection Meta is effectively putting a price tag on privacy. If this model proves to be successful or accepted in the EU, it could set a precedent that may be mirrored in the U.S., either voluntarily by companies or as a result of regulatory mandates.
The subscription is only available for users aged 18 and older. While free access with ads will continue to be available, the paid subscription will remove ads and prevent data from being used for ad targeting.
Meta also plans to pause showing ads to teenagers in the region starting November 6th but has not provided further details. Despite these changes, Meta emphasizes that it remains committed to its ad-supported business model and views the subscription as a compliance measure for European regulations rather than a fundamental shift in strategy.
Meta’s strategy indicates how companies are adapting their business models to comply with stricter privacy laws, signaling to U.S. policymakers and corporations that similar compliance mechanisms can be implemented without wholly disrupting existing ad-supported frameworks. This could serve as a case study for how American companies might also offer paid, ad-free versions of their services to comply with potential future privacy legislation.
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What to learn more about changing privacy laws? Read more with our eBook that includes a timeline of all privacy changes, since the creation of the first cookie in 1994. Find it here!
