Today, Meta announced significant changes to Facebook and Instagram in the EU, including a 40% reduction in the price of ad-free subscriptions. Users in the EU can choose between a paid, ad-free experience or a free service with ads, which now includes an option for less personalized ads.
Subscription Price Reduction
- Monthly subscription reduced from €9.99 to €5.99 on the web, and from €12.99 to €7.99 on iOS and Android.
- Additional accounts will cost €4/month on the web and €5/month on iOS and Android.
- Existing subscribers will automatically benefit from the reduced price.
Less Personalized Ads
- Users opting for free services can choose to see less personalized ads.
- These ads will be based on minimal data points like age, location, gender, and session activity.
- This option aims to comply with GDPR and DMA regulations.
Impact on Ad Relevance
- Less personalized ads may be less relevant to users' interests.
- Introduction of unskippable ad breaks to maintain advertiser value.
- Users will be notified about this new option and can adjust their ad settings anytime.
Commitment to Personalized Ads
- Personalized ads remain crucial for connecting users with relevant brands and products.
- They are particularly beneficial for small businesses, driving significant revenue and economic growth.
- Meta will continue to advocate for regulations that support personalized advertising.
Compliance with EU Regulations
- The subscription model aligns with recent EU regulatory requirements and court rulings.
- Meta remains committed to offering free services supported by personalized ads while providing users with control over their data.
Future Outlook
- Meta will continue to invest in tools that enhance the value of personalized advertising.
- The new subscription model is included in Meta's business outlook and guidance.
These changes reflect Meta's efforts to comply with evolving EU regulations while maintaining a balance between user choice and business sustainability.
