Meta Platforms (NASDAQ:META), the parent company of Instagram and Facebook, is contemplating introducing a subscription service called "SNA," short for subscription no ads, for European users.
Under this proposed plan, users would have the option to pay a monthly fee to access Instagram and Facebook without ads or continue using the platforms for free with personalized ads, the Wall Street Journal reported.
On desktop platforms, Meta is considering charging a fee of approximately €10 (€1 = $1.05) per month for a Facebook or Instagram account, with an additional charge of roughly €6 for each linked account.
On mobile devices, the monthly price would increase to about €13 due to the inclusion of commissions from Apple's (NASDAQ:AAPL) and Google's (NASDAQ:GOOGL) app stores for in-app payments.
This initiative is Meta's response to navigate European Union regulations that could limit its ability to deliver personalized ads without explicit user consent, which is a crucial revenue source for the company.
Meta has shared this plan with privacy regulators in Ireland and digital-competition regulators in Brussels during meetings held in September. It has also sought input from other EU privacy regulators.
A Meta spokesman told the WSJ that the company believes in “free services which are supported by personalized ads” but is exploring “options to ensure we comply with evolving regulatory requirements.”
It remains to be seen whether users would be willing to pay approximately $14 a month for an ad-free Instagram experience on their mobile phones or nearly $17 a month for both Instagram and Facebook on desktop.