Meta has announced a major shift in its advertising model for Facebook and Instagram users in the European Union. Facing significant pressure from EU regulators, the company will now allow users in the region to choose a “less personalised” ad experience. This means that EU users can either continue to use the platforms for free with ads that rely less on personal data, or they can pay for an ad-free experience at a newly reduced subscription price.
The change represents a response to EU criticism of Meta’s previous “pay or consent” model, which offered only two options: accept highly targeted ads or subscribe to an ad-free experience. Regulators argued that this approach failed to provide users with a meaningful choice to protect their personal data while still using Meta’s platforms.
Meta’s Ad-Free Subscription Option Now 40% Cheaper
In addition to introducing a less personalised ad option, Meta announced a 40% reduction in the cost of its ad-free subscriptions. Previously priced at €9.99 per month for web users and €12.99 for mobile users, the new subscription rates are €5.99 and €7.99, respectively. Those already paying for the ad-free service will automatically receive the lower rates, making ad-free access more accessible for existing and new subscribers alike.
A New Era for Advertising in Europe: The Role of the Digital Markets Act (DMA)
The shift comes in response to the EU’s Digital Markets Act (DMA), legislation designed to address the influence and business practices of large tech companies, particularly those deemed “gatekeepers” of digital markets. As a “gatekeeper,” Meta is now required to give users more control over their data and must secure explicit consent before combining users’ personal data with data from third parties to generate targeted ads.
The European Commission, which oversees compliance with the DMA, previously ruled that Meta’s ad model did not align with the new legislation. Regulators emphasized that users should be able to use major digital platforms without feeling forced to share extensive personal data or pay a subscription to maintain their privacy. This stance reflects the EU’s broader commitment to data privacy and transparency, which have been central tenets of its policy over recent years.
How the Less Personalised Ad Option Works
According to Meta, the new “less personalised” ad option allows users to retain control over their data while still seeing ads on Facebook and Instagram. Under this model, users who choose not to pay for the subscription service will see ads that are less specifically tailored to their personal interests, meaning the platform will rely on broader data points rather than in-depth individual profiling. While these ads may be somewhat relevant, they are unlikely to reflect the high degree of personalisation that Meta’s traditional advertising algorithms deliver.
Meta acknowledged that this adjustment may result in “less relevant” ads for individual users, which could impact advertiser reach and engagement. Nonetheless, the company reaffirmed its commitment to providing a free, accessible internet that relies on ad revenue. The tech giant described personalised advertising as a cornerstone of this approach, enabling businesses to reach audiences while funding a model that allows users to access content without a subscription fee.
To ensure continued value for advertisers, Meta stated that ads served under the “less personalised” option will feature brief unskippable ad breaks. This approach aims to balance user choice with advertiser needs, allowing the platforms to maintain revenue while adapting to new regulatory requirements.
Changes in Meta’s Business Model and the Broader Implications for Big Tech
Meta’s recent changes reflect an ongoing evolution in its business model, as tech companies worldwide adapt to more stringent privacy regulations. The European Union, which has some of the world’s strictest data privacy rules, continues to shape the landscape for digital businesses operating within its jurisdiction. As companies like Meta pivot to meet these regulations, the EU’s approach may serve as a model for other regions aiming to hold tech giants accountable for privacy practices and data usage.
The new ad options on Facebook and Instagram represent a strategic compromise, enabling Meta to comply with the DMA while preserving a significant portion of its advertising model. By introducing less personalised ads, the company provides EU users with greater autonomy over their data without fundamentally abandoning its reliance on advertising revenue.
EU Users Will Receive Notifications About the New Ad Choices
In the coming weeks, Facebook and Instagram users in the EU will receive notifications explaining the updated options. These notifications will guide users through the process of selecting either an ad-free subscription or the new “less personalised” ad experience. Meta hopes the added clarity will help users make informed choices based on their preferences and privacy concerns.
By expanding its advertising model, Meta aims to address regulatory concerns, enhance user trust, and align with EU data privacy standards. As privacy regulations continue to evolve globally, Meta’s approach could serve as a roadmap for other companies navigating the complex intersection of personal data, user choice, and digital advertising.
