Meta (META.US) reduces subscription fees for EU Facebook and Instagram by 40% to meet regulatory requirements.

Meta (META.US) has lowered the price of its ad-free subscription versions of Facebook and Instagram for European Union users by 40%, in order to comply with regulatory requirements in the region. The company stated that it will reduce the monthly subscription prices for its services in the EU from 9.99 euros for desktop users to 5.99 euros, and from 12.99 euros for iOS and Android users to 7.99 euros. The company also mentioned in a blog post on Tuesday that if EU users agree to display ads based on limited user data, the social media company will provide them with free access to Facebook and Instagram. Due to EU regulations aimed at cracking down on anti-competitive practices by tech companies, Meta initially launched an ad-free subscription service in the EU in October 2023. The subscription service was put into effect after the company was fined over 4 billion dollars for violating EU data privacy laws by regional regulatory authorities. Meta President Nick Clegg stated on Threads on Tuesday, "The changes we are announcing today align with the requirements of EU regulatory authorities, going beyond what is required by EU law." The company mentioned that if EU users choose the "less personalized option" for free access to Facebook and Instagram, they will see ads that may be less relevant to their personal interests. Meta stated that in this version, it will display ads based on a "minimal set of data points" including users' age, gender, location, and interactions with ads. Additionally, EU users opting for the free option will also see non-skippable ads, which aim to provide value for advertisers. Compared to regions with less strict regulations such as the US, the rigorous regulation in the EU has impacted Meta's ability to rapidly launch new services in the region. For example, Meta introduced a service similar to Twitter called Threads in the US in the summer of 2023, but it took almost six months to offer the service to European users. Meta's Global Policy Lead, Pedro Pavn, mentioned that while EU regulatory authorities have made it challenging for ad-based companies to operate in the region, he believes that providing personalized ads represents the foundation of a "modern, free internet" that allows people to connect with the most relevant brands and products in a seamless and non-intrusive manner. Pavn stated in a post on LinkedIn, "That's why I believe that even with a few equal choices, most people would still choose our personalized ad services."