Meta, the parent company of Facebook and Instagram, is reportedly considering offering a subscription model for users in the UK who prefer an ad-free experience. According to a report by the BBC, the tech giant is exploring this option following the success of its ad-free subscription service in the European Union (EU).
Meta’s contemplation of a subscription model in the UK comes on the heels of a legal case that saw the company agree to halt personalized advertising for a UK citizen. The case was settled to avoid a high-profile trial in London’s High Court.
The lawsuit was spearheaded by human rights campaigner Tanya O’Carroll, who filed a $1.5 trillion claim against Meta in 2022. O’Carroll argued that the company violated UK data protection laws by collecting her personal data and targeting her with ads without her consent.
“This is an individual settlement, but I believe its ramifications extend far beyond me,” O’Carroll stated. She emphasized that the UK data protection authority supported her case and affirmed its commitment to helping others in the UK exercise their right to object to targeted advertising.
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Meta introduced its no-ads subscription service in the EU in 2023 in response to evolving regulatory requirements, particularly the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA).
Initially priced at €9.99 per month on the web and €12.99 per month on iOS and Android, Meta later reduced the cost by 40%, bringing prices down to €5.99 and €7.99 per month, respectively.
Despite offering an ad-free option, Meta maintains that personalized ads are crucial for both individuals and businesses. The company argues that targeted advertising helps users discover relevant brands and products while providing cost-effective marketing solutions for businesses, particularly small enterprises.
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“Personalized ads are especially valuable for small businesses, which make up over 99% of businesses in the EU and employ more than 100 million people across the region,” Meta stated in 2023.
Meta’s latest quarterly financial report underscores the significance of advertising to its business model, with ads accounting for more than 96% of its total revenue. While the company is exploring alternative revenue streams like subscriptions, it remains to be seen whether a widespread shift away from ad-based models is on the horizon.
As Meta evaluates the possibility of expanding its ad-free subscription service to the UK, the decision could mark a pivotal moment in the ongoing debate over data privacy, digital advertising, and user choice in the online ecosystem.
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