Meta reduces subscription fees for Facebook and Instagram in the EU by 40% to meet regulatory requirements
Meta has reduced the price of its ad-free subscription version of Facebook and Instagram for EU users by 40% to comply with regulatory requirements. The monthly fee for desktop users has decreased from €9.99 to €5.99, while mobile users will see a drop from €12.99 to €7.99. Users who agree to see ads can access the service for free. This move comes in response to the EU's regulations against anti-competitive behavior and after Meta was fined for violating data privacy laws. Meta stated that this change aligns with EU regulatory requirements and that ads will be displayed based on a minimal data point set
According to Zhitong Finance, Meta (META.US) has reduced the price of its ad-free subscription version of Facebook and Instagram for EU users by 40% to comply with regulatory requirements in the region. The company stated that it will lower the monthly subscription price for desktop users in the EU from €9.99 to €5.99, and for iOS and Android users from €12.99 to €7.99. The company mentioned in a blog post on Tuesday that if EU users agree to see ads based on limited user data, the social media company will also provide free access to Facebook and Instagram.
Meta initially launched an ad-free subscription service in the EU in October 2023 due to regulations aimed at combating anti-competitive behavior by tech companies. This subscription service also came into effect after the company was fined over $400 million by regional regulators for violating EU data privacy laws.
Meta President Nick Clegg stated on Threads on Tuesday, "The changes we are announcing today are in line with the requirements of EU regulators and go beyond what EU law requires."
The company indicated that if EU users choose the "less personalized option" to access Facebook and Instagram for free, they will see ads that are "likely less relevant to their personal interests." Meta stated that in this version, it will display ads based on a "minimal set of data points," including users' age, gender, location, and how they interact with ads. Additionally, Meta noted that EU users who opt for the free option will also see non-skippable ads designed to "provide value to advertisers."
Compared to regions with less regulation, such as the United States, the strict regulations in the EU have affected Meta's ability to quickly launch new services in the region. For example, in the summer of 2023, Meta launched the Twitter-like Threads service in the U.S., but it took nearly six months to offer the service to European users.
Meta's Global Policy Director Pedro Pavón stated that although EU regulators make it difficult for online advertising-based companies to operate in the region, he believes that the practice of providing personalized ads represents "the foundation of a modern, free internet," allowing people to "connect seamlessly and without interruption with the brands and products most relevant to them." Pavón said in a LinkedIn post, "That’s why I believe that even with several equal options, most people will still choose our personalized advertising service."