From March 2024, DMA and DSA will change the rules of the Internet and networks
From March 2024, new European regulations known as the Digital Markets Act (DMA) and the Digital Services Act (DSA) will bring significant changes to the Internet and networks. These regulations aim to regulate the practices of the world’s internet giants, not only the GAFAM (Google, Apple, Facebook, Amazon, and Microsoft) but also X (Twitter) and TikTok. The DMA, in particular, focuses on social media platforms, and we should prepare for some changes in the coming months.
Why are TikTok and Instagram considering paid subscriptions?
The introduction of the DMA seeks to limit the monopoly of large digital companies like GAFAM and X (Twitter). Article 5 of the DMA specifically requires social media platforms to offer an alternative solution to targeted advertising, which has become prevalent. Platforms will now be required to obtain users’ consent before bombarding them with personalized ads. This will significantly disrupt the economic model of social media platforms as advertising is their primary source of revenue, and targeted advertising is particularly lucrative.
Facebook has already experienced the consequences of Apple’s new privacy rule in 2021, which impacted its ability to collect user data for targeted advertising. To tackle this potential problem in the future, social networks may start offering paid subscription plans that eliminate all advertising. Users could opt to pay a few euros every month to enjoy an ad-free experience. While users may still have the option to refuse targeted advertising, general commercial content will likely still be present.
X (Twitter) has already taken the initiative by introducing a Premium plan priced at €9.60 per month, promising a reduction in advertising. Facebook and Instagram have also been contemplating similar paid subscription options for some time, and it may finally become a reality. Meta, the parent company of Facebook, is reportedly considering a subscription plan costing 10 euros per month. TikTok, too, will not be able to escape these radical changes. It is speculated that TikTok may offer a subscription plan to hide advertisements for a monthly fee of 5 euros.
As these changes are driven by European legislation, it is anticipated that these paid subscription plans, if implemented, will primarily target users in the European region. Users in the United States may be able to maintain their current social media habits unless the internet giants discover a more significant financial interest in expanding these plans globally.
