Meta Revamps Ad-Free Subscription Service for EU Users
Compliance with EU Regulations Drives Changes
In a bid to comply with European Union regulations, Meta has slashed the prices of its ad-free subscription versions of Facebook and Instagram by 40% for EU users. The social media giant will also offer EU users access to Facebook and Instagram for free, provided they agree to view ads based on limited user data.
Background: EU Regulation and Fines
The move comes after Meta debuted its ad-free subscription service in October 2023, following an EU regulation aimed at curbing anti-competitive practices by tech companies. The company had also faced fines exceeding $400 million for violating EU data privacy laws.
New Pricing Structure
Meta President Nick Clegg announced that the company will reduce the monthly subscription service price from €9.99 to €5.99 for desktop users and from €12.99 to €7.99 for iOS and Android users.
Less Personalized Ads Option
EU users opting for the free service will see ads that may be less relevant to their interests. These ads will be based on a minimal set of data points, including age, gender, location, and ad engagement. Additionally, unskippable ads will be displayed to provide value to advertisers.
Impact of EU Regulations
The EU’s stringent regulations have slowed down Meta’s ability to launch new services in the region compared to less-regulated areas like the US. For instance, it took nearly half a year for Meta to offer its Twitter-like Threads service to European users after its US launch.
The Importance of Personalized Ads
Pedro Pavón, Meta’s global policy director, believes that personalized ads are essential for a modern, free internet, allowing users to connect with relevant brands and products seamlessly. He expects most users to choose the personalized ads service despite having alternative options.
A Shift in Online Advertising
Meta’s revamp of its ad-free subscription service marks a significant shift in online advertising, as the company adapts to EU regulations while striving to maintain a seamless user experience.
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