> the rich users are subsidizing the app for the poor users
That would only hold if the majority of paid ad placements on a social media site targeted rich people. As is evident by the ads that appear surrounding elections, the ads targeting average people to dump their savings into crypto and all of the gambling (might as well be gambling...) gaming ads that doesn't seem like a safe assumption to make although I have no data to support either assumption.
It is well established that the ARPU from richer demographics (income levels, countries etc) is much higher than that from poorer ones. The redistributive effect is real, though perhaps there may be other ways (e.g. reparations) that have less harmful side effects.
That would only hold if the majority of paid ad placements on a social media site targeted rich people. As is evident by the ads that appear surrounding elections, the ads targeting average people to dump their savings into crypto and all of the gambling (might as well be gambling...) gaming ads that doesn't seem like a safe assumption to make although I have no data to support either assumption.