Benzinga - by Anusuya Lahiri, Benzinga Editor.
Meta Platforms Inc (NASDAQ: META) showcased a new strategy for its European audience, focusing on compliance with the region's stringent regulations.
The tech giant looks to halt the display of advertisements to users below 18 years of age across the EU and other European areas adhering to EU regulations.
Also Read: Meta Loses Another EU Lawsuit Shortly After Hefty Penalty For Data Privacy Breach
Meanwhile, adult users will face a choice: consent to targeted ads based on their digital activity or opt for a subscription-based, ad-free experience on platforms like Facebook and Instagram.
The subscription fees are €9.99 ($10.55) for desktop sign-ups and €12.99 for mobile users, accounting for app-store charges from tech giants Apple Inc (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG). This strategic move is detailed in a recent report by the Wall Street Journal reports.
EU privacy regulators, spearheaded by Ireland, have been vocal in their demand for user consent before displaying behavioral ads. After negotiations and discussions with regulators, Meta has formulated a plan that aligns with EU laws, further backed by a July court decision from the bloc's top tribunal. This decision supports the notion that social media companies can charge users who opt out of data usage for ad-targeting purposes.
Alongside these changes, Meta has introduced a fee of €6 per month for each additional linked account on desktop and €8 per mobile.
This pricing strategy aligns with other tech platforms offering ad-free services, such as YouTube, Netflix Inc (NASDAQ: NFLX), and Spotify Technology S.A. (NYSE: SPOT).
However, U.S. users might not see a similar subscription offering to opt out of ads shortly.
Meta, with over $113 billion in advertising revenue last year, continues to advocate for an ad-supported internet, emphasizing accessibility to personalized products and services for users across different economic statuses.
Earlier in 2023, Meta launched non-personalized content streams for users within the EU, aligning with the European bloc's revamped digital mandate, the Digital Services Act (DSA).
Price Action: META shares traded higher by 2.45% at $304.39 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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