Mark Zuckerberg has always said that Facebook will always be free, but as E.U. regulations change, they could limit the ability of the company to even gather information on these users to target relevant ads, perhaps now is the time for Meta to take a second look at that founding concept.

According to a new report from The New York Times, that is indeed now in play, with Meta reportedly weighing the potential of offering paid versions of both Facebook and Instagram, which would enable E.U. users to avoid ads, and personal data usage, entirely in both apps.

As NYT:

"Those who pay for Facebook and Instagram subscriptions would not see ads in the apps, said the people, who spoke on the condition of anonymity because the plans are confidential. That may help Meta fend off privacy concerns and other scrutiny from E.U. regulators by giving users an alternative to the company's ad-based services, which rely on analyzing people's data, the people said."

That relates to the E.U.'s evolving Digital Services Act (D.S.A.), set to come into effect soon, which should lay down more explicit controls for users over how their personal data is used. Users will also be allowed to opt out of personalized feeds, based on activity within apps and algorithmic interpretation of preferences. There will also be more controls placed directly over the kind of information that people choose to submit to be used for ad targeting, and if enough people choose to withhold their data, that could have a pretty important impact on Meta's ad business in the region.

It also capitalizes on Apple's iOS 14 app tracking update, which will enable users to opt out of sharing personal data with any app that they use. It has already cost Meta billions in lost ad revenue, and with another blow to its data coming in, perhaps now is the time for the company to look for other revenue options.

Under the reported proposal, Facebook and Instagram would be free, but users could pay for a subscription to remove ads, if they so chose.

Such an option would likely need to be priced at least $US6 per month, based on Meta's most recent earnings report, which shows that Facebook generates $US17.88 per quarter from each E.U. user.
Meta could also quote that to $8 dollars per month to be balanced with inflation and other such things, but then also factor in these factors based on subsequent drops in overall ad views, and how you would mathematically balance that with these numbers. Which could then make the price yet again even more to account for potential losses. But this, at base level, is roughly about the level of money Meta could potentially lose by introducing an ad free version.
And since Meta is already selling verification on Facebook and Instagram for $US11.99 a month, which apparently has gone pretty well, maybe it's now also more receptive to the idea of charging for subscriptions, which is an option it's always kept open, even though, as noted, Zuckerberg has maintained that the app will forever be free, at least in some version.

Back in 2018, as probes into the scandal involving Cambridge Analytica were ongoing, Zuckerberg testified to the U.S. Senate. During one point of the testimony, he was directly asked whether Facebook would ever consider making access cost, in order to avoid the prospect of harvesting their personal data.
Zuckerberg's response:
"There will always be a version of Facebook that is free."
A "version", which seems to suggest that the company was keeping the door open for another version of the app as well.

Then Meta COO Sheryl Sandberg continued to explain further that:

"We have various forms of opt-out. We don't have an opt-out at the highest level. That would be a paid product."

So the concept of paid opt-out for ads has been around for years but something that Meta does not seem to actively considered. However, till now Meta is tight-lipped over this concept.

It makes sense. Meta has already faced big fines for violating previous E.U. data regulations, underlining E.U. regulators' inflexibility in enforcing such, and as noted, its ad business has also suffered some significant blows as a result of previous updates to data collection processes.
 
Perhaps, now is the time, and Meta will really consider an ad-free version, hence further expanding its paid subscription offerings.

Which would make Elon Musk very happy, considering his stance that all social platforms will eventually need to move to paid offerings.

It still feels like most people will still prefer sticking to the ad-free versions, while the platforms will need to offer free access to maximize traction in developing markets.

But maybe, the tide is shifting, and more paid options will soon become the way, in more apps.