Meta Platforms announced Tuesday that it will offer European users of Facebook and Instagram a choice between cheaper ad-free subscriptions and a new free tier with less personalized ads, a move aimed at addressing mounting pressure from European Union regulators over data privacy practices.
The tech giant's revised model will reduce the price of its ad-free subscriptions by 40%, bringing the cost down to €5.99 per month for web users and €7.99 for iOS and Android users, compared to previous rates of €9.99 and €12.99, respectively. For those who opt to use the platforms for free, Meta will offer a less personalized advertising experience, utilizing limited data such as content viewed during a session and broad demographic details like age, gender, and location.
"In the less personalized option, we will use significantly less data to show ads, so ads may be less relevant to a person's interests," Meta said in its statement. The changes, which go beyond legal requirements, underscore the company's efforts to address European regulators' concerns while maintaining its advertising revenue model.
The adjustments come as the EU increases scrutiny on tech giants under the Digital Markets Act (DMA), which aims to curb the market dominance of major platforms and enhance consumer data protections. Meta has emphasized that personalized ads help sustain its free services, while conceding to regulatory demands. "Meta has long held the position that personalized ads support a vibrant internet economy by providing free services for billions of people around the world," the company said. It pledged to continue advocating for regulations that support what it describes as responsible data use in personalized advertising.
EU officials remain watchful. "The new model introduced by Meta is under Meta's sole responsibility, and it is neither endorsed by nor agreed with the Commission. It is premature to speculate about the impact on the pending non-compliance proceedings," an EU spokesperson told Reuters. The official added, "Our objective is to bring Meta to full and effective compliance in this matter as soon as possible."
Meta's adjustments follow a recent ruling by Europe's highest court that requires the company to limit its use of personal data for targeted advertising on its platforms. The decision was seen as a victory for privacy advocates, including Max Schrems, who has long campaigned against intrusive data collection practices. Anu Talus, chair of the European Data Protection Board, cautiously welcomed Meta's move, stating, "While the solution still needs to be assessed, we welcome the fact that an important platform announces that it will offer a new choice for free with less detailed profiling for advertising."
Under the new model, the "less personalized" ads will be context-driven, based on user activity during a particular session, and will incorporate basic demographic targeting. Certain ads will be unskippable for a brief duration. Meta's shift aims to balance regulatory demands with the company's need to maintain its advertising-driven revenue model.
Despite the changes, Meta defended its overall business approach. "We will continue to advocate for regulations that support the responsible use of personalized advertising, allowing us to maintain the high-quality, free services that people have come to expect from us," it said.
