Meta has averted a potential “ad-pocalypse” in the UK—a scenario where its ad-targeting model could have been ruled entirely illegal—by introducing a £3.99-a-month fix. The new subscription service for Facebook and Instagram is the company’s strategic solution to a regulatory crisis that threatened its core business.
The fix involves giving users a choice. They can either continue with the ad-supported model or pay a monthly fee (£2.99 on web, £3.99 on mobile) to have all ads removed. This simple choice was enough to satisfy the UK’s Information Commissioner’s Office (ICO), which had warned Meta that its previous, no-choice model was unlawful.
The ICO’s approval of this fix means Meta can continue its lucrative ad business in the UK, targeting users who don’t subscribe. It provides the legal cover the company needed by creating a clear, albeit paid, opt-out mechanism. This follows a high-profile legal settlement that underscored the need for such a choice.
This solution, however, did not work in the EU. There, the “fix” was seen as a further violation, leading to a €200m fine from the European Commission. EU regulators argue that the only acceptable fix is to make the ad-supported model less intrusive for everyone, not to charge for an escape route.
Thanks to the UK’s more business-friendly regulatory approach, the ad-pocalypse has been averted for Meta. Its £3.99 subscription has successfully patched its legal vulnerabilities in the UK, ensuring the ads will continue to flow for the majority of users, while offering a premium exit for a minority.