Meta slashes EU Facebook and Instagram subscription fees by 40% to meet regional regulatory demands

Meta cut the price of its ad-free subscription versions of Facebook and Instagram by 40% for European Union users to comply with regulatory demands in the region.

The social media company will also offer EU users access to Facebook and Instagram for free if they agree to be shown ads based on a limited set of user data, the company said in a Tuesday blog. 

Meta originally debuted an ad-free subscription service for the EU in October 2023 due to an EU regulation intended to clamp down on anti-competitive practices by tech companies. The subscription service also came into effect after regional regulators fined the company over $400 million for violating EU data privacy laws.

"The changes we're announcing today meet EU regulator demands and go beyond what's required by EU law," Meta President Nick Clegg said Tuesday on Threads. 

The company said it will drop the price of its EU monthly subscription service from 9.99 euros to 5.99 euros for desktop users and from 12.99 euros to 7.99 euros for iOS and Android users. 

If EU users choose the "less personalized option" to access Facebook and Instagram for free, they will see ads that "may be less relevant to a person's interests," the company said. For this version, Meta said it will show ads based on "a minimal set of data points," including users' age, gender, location and how they engage with ads.

Additionally, EU users who choose the free option will also see unskippable ads that are intended to "provide value to advertisers," Meta said. 

The EU's tough regulations have impacted Meta's ability to quickly debut new services in the region compared to less-regulated areas like the U.S. In 2023, for instance, it took nearly half a year before Meta was able to offer its Twitter-like Threads service to European users after it launched in the U.S. that summer.

Pedro Pavón, a Meta global policy director, said that while EU regulators make it difficult for online-advertising based companies to operate in the region, he believes that business practice of offering personalized ads represents the "the foundation of a modern, free internet" and lets people "connect with the brands and products most relevant to them in seamless and non-disruptive ways."

"This is why I expect that even when presented with several equal choices, most people will still choose our personalized ads service," Pavón said in a LinkedIn post said.

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