The move comes after the successful launch of Threads in over 100 countries, including the United States and the United Kingdom. With its entry into the EU, Threads now has access to a potential user base of 448 million people. This expansion is a significant step for Meta as it looks to establish itself as a global player in the social media landscape.
Understanding the delay in launching Threads in the EU
The delayed launch of Threads in European countries can be attributed to regulatory challenges, specifically the Digital Markets Act (DMA). The DMA, a comprehensive piece of legislation aimed at regulating Big Tech companies, has created complexities for Meta in complying with the new rules. As a designated “gatekeeper” under the DMA, Meta has until March 2024 to comply with the requirements set forth in the legislation.
Adam Mosseri, the head of Instagram, which is tightly integrated with Threads, acknowledged the impact of the regulatory landscape on the delay. While Meta didn’t explicitly mention the DMA, industry experts believe its provisions played a role in the timing of the Threads launch in Europe.
Threads’ integration with Instagram and its implications
One of the reasons for Threads’ early success was its seamless integration with Instagram. Users could sign up for Threads using their existing Instagram accounts, and quickly connect with other Instagram users they followed. This integration helped Threads reach 100 million users within days of its launch.
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However, questions have been raised about Meta potentially violating DMA rules against self-preferencing through this integration. In response to these concerns, Threads has undergone several changes since its launch. In mid-November, the platform introduced the ability for users to delete their Threads account without deleting their Instagram account. While the integration between the two services remains, it’s not as tightly intertwined as it was initially. Users still need an Instagram account to post to Threads.
Ad-Free subscriptions in Europe
Meta is now offering ad-free subscriptions in the European Union, European Economic Area and Switzerland for €9.99 (9.43 CHF Fr.) per month for web access and €12.99 (12.26 CHF Fr.) per month for mobile access. This initiative aims to address privacy concerns by eliminating behavioral tracking and personalized ads. While all linked accounts will initially be included, beginning March 1, 2024, each additional account will be subject to an additional fee of €6 (5.66 CH Fr.) per month for web access and €8 (7.55 CH Fr.) per month for mobile access.
Currently limited to users 18 and older, Meta is exploring ways to provide a “useful and responsible advertising experience” for teenagers. The move to ad-free subscriptions responds to user demands for greater privacy and offers Meta an alternative revenue stream amid potential regulatory changes affecting personalized advertising.
The potential impact on X and Meta’s strategy
Threads’ entry into the European market poses an interesting challenge to its main competitor, X. While Threads shares similarities with X as a short messaging service, there are important differences in their approach. Threads is designed to be more entertaining and community-oriented, with a focus on topics such as sports, music, fashion, beauty, and entertainment.
However, this divergence from a pure news service may limit Threads’ appeal to users looking for up-to-date information and news. Chronological sorting of posts, a critical feature for a news service, is not a primary focus for Threads. This distinction could result in X maintaining its stronghold as the go-to platform for breaking news and real-time updates.