Meta Platforms, the parent company of Facebook and Instagram, announced on Tuesday that users in Europe will now have the choice to see less personalized ads if they opt not to pay for an ad-free subscription. This decision comes in response to pressure from European regulators regarding digital competition concerns.
For the past year, Meta has been offering an ad-free subscription option to users in the European Union to comply with the region's stringent data privacy regulations. However, regulators criticized the company for providing users with what they deemed a false choice.
In a blog post, Meta revealed that users will still have the option to choose between the subscription-based ad-free experience and the free version. Additionally, a new third option will be introduced in the coming weeks, allowing users to view digital ads that are less personalized.
Under this new option, ads will be targeted based solely on the user's current session on Facebook or Instagram, with data going back no more than two hours. Minimal personal information such as age, location, gender, and ad engagement will also be considered, while data from previous interactions on the platforms will not be utilized for ad targeting.
Meta acknowledged that the less personalized ads may result in users seeing content that is less relevant to their interests. The company emphasized that this reduction in ad relevance is a direct consequence of using significantly less data for ad personalization.
Users who select the new option will encounter ad breaks that cannot be skipped for a few seconds, according to Meta.
European Union regulators had previously accused Meta of violating the bloc's digital regulations by offering users the ability to pay a monthly fee to avoid personalized ad targeting. This move followed a ruling by the EU's top court, which mandated that Meta obtain user consent before displaying ads based on personal data.
Meta also announced a reduction in the monthly subscription prices for the ad-free option. Web users will now pay 5.99 euros, down from the previous 9.99 euros, while iPhone and Android users will be charged 7.99 euros instead of 12.99 euros.
