Meta, the parent company of Facebook and Instagram, is evaluating the possibility of introducing a paid, ad-free version of its platforms in the UK. This consideration comes after the company reached a legal settlement in a landmark privacy lawsuit, allowing users to opt out of targeted advertising.
The lawsuit was initiated in 2022 by Tanya O’Carroll, a human rights activist, who accused Meta of violating UK data protection laws. She claimed that the company failed to honor her right to stop collecting and processing her personal data for targeted advertising purposes.
The case, which could have set a major legal precedent, was settled on February 9, 2024, without proceeding to trial at the High Court in London. Following the settlement, Meta agreed to cease using O’Carroll’s personal data for customized advertisements, marking a significant victory for digital privacy advocates.
The UK’s Information Commissioner’s Office (ICO) supported O’Carroll’s case, reiterating that users have the right to object to their data being used for direct marketing. This position, as formally stated by the data watchdog, could encourage further lawsuits from other users concerned about their digital privacy rights.
O’Carroll celebrated the outcome, stating:
“This settlement represents not just a victory for me, but for everyone who values their fundamental right to privacy. None of us signed up to be trapped into decades of surveillance advertising, held hostage by the threat of losing the ability to connect with our loved ones online.”
Despite the settlement, Meta maintains that it "fundamentally" disagrees with O’Carroll’s claims and insists it complies with the UK’s General Data Protection Regulation (GDPR). However, in response to evolving privacy regulations, the company is now considering a subscription-based model that would allow UK users to access an ad-free experience on its platforms.
A Meta spokesperson confirmed:
“We are exploring the option of offering people based in the UK a subscription and will share further information in due course.”
Currently, advertising contributes approximately 98% of Meta’s revenue, making it the backbone of its business model. The move towards subscription services is seen as a potential alternative revenue stream while addressing growing concerns around data privacy and user choice.
Meta's contemplation of a UK-based ad-free service follows a similar move in the European Union (EU). After a ruling by the European Court of Justice (ECJ) in 2023, Meta introduced a subscription plan for EU users, charging €7.99 per month for an ad-free experience.
In the UK, the ICO is currently reviewing how national data protection laws would apply to such a model, suggesting potential regulatory scrutiny before any official rollout.
With increasing global pressure for social media platforms to provide greater user control over data, Meta’s shift towards subscription-based services could indicate a broader trend in the industry. While this approach offers privacy-conscious users an alternative, it also raises questions about accessibility, as many users may be unable or unwilling to pay for an ad-free experience.
As digital privacy laws evolve, the future of social media advertising and monetization is likely to undergo significant transformations, potentially reshaping the way companies like Meta operate in global markets.
The potential introduction of an ad-free, subscription-based model by Meta in the UK signals a major shift in digital advertising and data privacy regulations. The decision follows a privacy lawsuit settlement with Tanya O’Carroll, who challenged the company’s practice of targeted advertising. While Meta continues to deny wrongdoing, it acknowledges the growing need for user choice in data processing.
With the ICO reviewing UK data protection laws, Meta's move could set a precedent for other tech companies navigating privacy regulations. The success of its €7.99/month model in the EU suggests a potential rollout in other markets. However, concerns remain over whether users will be willing to pay for ad-free access or if privacy rights should be a standard feature rather than a paid option.
As governments tighten regulations and consumers demand transparency, the future of social media monetization is set for significant transformation.