Meta Platforms (META) -) said Monday it will begin offering subscription-based, ad-free versions of its Facebook and Instagram social-media platforms to European users, following pressure from bloc regulators.
Meta said users in the European Union, the European Economic Area and Switzerland would have the option to pay between €9.99 and €12.99 ($10.59 and $13.76) a month for web or mobile access to its two biggest social media platforms linked to a specific account.
Meta added that the fees for iOS and Android versions of the subscription "take into account the fees that Apple (AAPL) -) and Google (GOOGL) -) charge through respective purchasing policies."
Meta has around 307 million daily active users on its Facebook social-media platform in Europe, based on the group's second-quarter data, with around 409 million users active on the platform on a monthly basis.
Meta last year was fined €390 million ($409 million) by officials in Ireland over its targeted ad policies and has remained in the crosshairs of European regulators over its user privacy terms.
"We believe in an ad-supported internet, which gives people access to personalized products and services regardless of their economic status," Meta said in a statement. "It also allows small businesses to reach potential customers, grow their business and create new markets, driving growth in the European economy."
"And like other companies we'll continue to advocate for an ad-supported internet, even with our new subscription offering in the EU, EEA and Switzerland," the statement added. "But we respect the spirit and purpose of these evolving European regulations, and are committed to complying with them."
Meta shares were marked 2.65% higher in early Monday trading following details of the subscription plans to change hands at $304.57 each.
Last week, Meta cautioned that that near-term ad spending could be affected by global macro conditions, while detailing 2024 spending plans that topped Wall Street forecasts.
The outlook offset an otherwise impressive third quarter earnings report, in which the Facebook owner posted a bottom line of $4.39 a share, nearly double the year-earlier tally and crushing Wall Street forecasts.
Group revenue was up 23%, the best growth rate in two years, to $34.15 billion. Monthly and daily active users on its family of Apps, including WhatsApp, Facebook and Instagram, rose 7% from the year earlier.
Looking into the current quarter, Meta said it saw revenue in the region of $36.5 billion to $40 billion, a range that topped the Wall Street forecast of $38 billion.
But the company noted that the current conflict in the Middle East, as well as weakening growth prospects in major economies around the world, could affect that outlook.
Meta also said that while it's trimming its near-term capital spending plans, it's also looking to grow headcount "significantly" next year. And it forecast overall capital spending in the region of $94 billion to $99 billion.
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