Europe's DSA guidelines and strict ad transparency laws can cause trouble to these tech companies.
Meta is planning to bring out a subscription-based business model and retire its traditional business model, as per reports.
This law was passed last year but is yet to be implemented fully.
Soon, Instagram and Facebook could roll out a feature that would allow users to completely remove ads from their feeds. Why such a move? This is because Europe's DSA guidelines and strict ad transparency laws can cause trouble to these tech companies. With stricter DSA and ad transparency laws set in Europe, Meta, Facebook and Instagram’s parent company could be looking at changing its business model. Reports suggest that Meta could give users an option to completely get rid of ads from their feeds.
So with these new transparency laws set in place in the EU, Meta is planning to bring out a subscription-based business model and retire its traditional business model, as per reports. This will be limited to the users in the European Union for now, as revealed by the reports.
Also read: Instagram will soon release an AI chatbot, what if it's actually risky?
Let’s try to understand this subscription-based model. For starters, with the help of the subscription, users will be able to enjoy an ad-free experience, but of course they’ll have to first pay for it. While the subscription-based model could be rolled out soon, those who don’t want to pay can continue their experience in a free version which comes with ads.
If there’s any truth to the reports then this would mean a big move for Meta. After quite a long period, it would move away from the “users-as-product” model as its business strategy.
Also read: How to download Facebook videos on your Android or iOS smartphone
As mentioned earlier, this move could be Meta’s response to the EU's Digital Services Act which demands more transparency from big tech companies in regard with their practices related to targeted advertising and content moderation. For the uninitiated, this law was passed last year but is yet to be implemented fully. This is more focused on companies that have extensive platforms like Instagram and Facebook by Meta.
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Mustafa Khan
Mustafa is new on the block and is a tech geek who is currently working with Digit as a News Writer. He tests the new gadgets that come on board and writes for the news desk. He has found his way with words and you can count on him when in need of tech advice. No judgement. He is based out of Delhi, he’s your person for good photos, good food recommendations, and to know about anything GenZ. View Full Profile
