Business Standard

Meta mulls paid option for ad-free Instagram, Facebook in India: Details

It follows Meta's talks to launch a similar plan in the European Union (EU) to conform with its privacy concerns

Photo: Bloomberg

Photo: Bloomberg

BS Web Team New Delhi

Listen to This Article

Meta, the parent company of Facebook, Instagram, and WhatsApp, led by Mark Zuckerberg, is contemplating the introduction of an ad-free subscription plan in India by 2024, according to a report by Mint published on Monday. This consideration comes on the heels of discussions to initiate a similar plan in the European Union (EU) in order to align with privacy regulations there.

An individual knowledgeable about the development was cited in the report, stating that the company has been in dialogue to explore avenues for monetising Meta on a global scale, including India.

"While the firm is striving to comply with the newly enacted Digital Personal Data Privacy (DPDP) Act, there will be intensified discussions on the optimal ways to ensure full compliance with data protection regulations. A pilot for a paid, ad-free subscription option for users in India, following a trial in the EU, is likely to be rolled out in mid- or late-2024," the person was quoted as saying.
 

Last week, the Wall Street Journal (WSJ) reported that Meta is looking to introduce an ad-free subscription plan for Instagram and Facebook within the EU.

According to the WSJ report, a $14 monthly subscription fee for using an ad-free version of Instagram on mobile phones will be levied unless customers consent to the platform utilising their personal data for targeted advertisements.

Furthermore, Meta plans to charge users $17 for desktop versions of both Facebook and Instagram in the coming weeks, the report added.

Earlier this year, the social media conglomerate was fined 390 million euros by Ireland's Data Privacy Commissioner and was instructed that it could not use the so-called "contract" legal basis for sending user-targeted ads based on their online activity.

In response, Meta indicated that it would seek the consent of users in the EU before allowing businesses to aim targeted advertisements at them, aiming to meet evolving regulatory requirements in the region.

Companies now face stringent restrictions regarding the use of private data. In May, Facebook was fined 1.2 billion euros for breaching privacy laws that mandate appropriate measures for transferring data from the EU to the USA.

Notably, introducing a subscription option marks a significant shift in Meta's business strategy. Zuckerberg has consistently argued that his core services should remain free and ad-supported to be accessible to individuals across all income brackets.

Speaking at a conference in 2018, Zuckerberg asserted, "You don't need thousands of dollars to connect with people who use our services."

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 09 2023 | 9:03 AM IST

Explore News