Mark Zuckerberg has long averred that Facebook will always be free to use, but with E.U. regulations growing increasingly strict-by perhaps further limiting the company's ability to collect user data for ad targeting-maybe now is the time for Meta to rethink that basic idea.

Indeed, that is now in play, according to a new report from The New York Times, as Meta is weighing up the potential for paid versions of both Facebook and Instagram, which would allow E.U. users to avoid ads, and entirely personal data usage, in both apps.

Per 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 providing users with an alternative to the company's ad-based services, which rely on analyzing people's data, said the people.

This is related to the E.U.'s evolving Digital Services Act (D.S.A.), in force soon, that aims to provide more explicit controls for users on the use of their private data. There, they shall opt out to control personalized feeds based on in-app activities and algorithmic interpretation of their preferences. But for now, there will also be more direct controls over what sorts of information users submit to be used for ad targeting-and if enough people choose to withhold their data, that could have a pretty material impact on Meta's ad business in the region.

It also follows the move, Apple's iOS 14 app tracking update, which lets users decide whether or not they want an application to share information, so it is collecting with their usage. That's already a cost Meta has lost in billions of dollars in ad revenue, and another blow to its data, perhaps now is the right time for the company to look for other forms of revenue options.

To be clear, under the reported proposal, Facebook and Instagram would remain free, but users would be able to pay for a subscription to remove ads, if they so chose.

The price of such an option likely would have to be 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 price that at $8 per month to reflect declines but would then also need to factor into impacts of subsequent decreases in overall ad exposure and how you mathematically balance that with these numbers. Which may drive the cost higher to factor in potential losses. But as a baseline this is roughly the amount that Meta could lose if offering an ad-free version.
And since Meta is already selling verification on Facebook and Instagram for $US11.99 a month-apparently reasonably well-received-it may now be more amenable to the idea of charging for subscriptions, which it's always left open as an option, even if, as noted above, Zuckerberg has insisted that the app will forever be free, at least in some form.

Back in 2018, while investigation processes were being done over the Cambridge Analytica scandal, Zuckerberg testified before the US Senate. He was asked directly if Facebook may consider to charge for access to avoid concern over personal data collection.

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 further elaborated that:

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

So, the idea of paying for the opt-out for ads has existed for a long time, but it's not something that seems to have actively been considered by Meta. Till now, at least, Meta remains tight-lipped on the concept.

Well, that makes sense. Meta has already endured stiff fines over violations of earlier E.U. data protections-illuminating E.U. regulators are not likely to flex on these matters and, as reported, its ad business also experienced some hard hits from earlier data collection overhauls.

Perhaps now is the time, and Meta will actually introduce an ad-free version, an addition to its paid subscription services.

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

Still, it seems like most people will opt to stick with ad-free versions, and platforms will have to offer free access in order to get maximum traction in developing markets.

But perhaps, the tide is turning, and more paid options will soon be the way in more apps.