LONDON – Facebook and Instagram users in Europe will get the option to see less personalized ads if they don't want to pay for an ad-free subscription, social media company Meta said Tuesday, bowing to pressure from Brussels over privacy and digital competition concerns.
Meta Platforms has been offering European Union an ad-free subscription option for about a year to comply with the continent's strict data privacy rules, but regulators had accused the company of giving people a false choice.
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The company said in a blog post that while people will still be able to choose between the subscription and existing free versions, it would also start giving free users an extra option over the coming weeks to see digital ads that are less personalized.
This means ads will be targeted at users based only on what they see during their current session on Facebook or Instagram going back no more than two hours, plus minimal personal information such as age, location, gender as well as how they engage with ads.
Data from all of a user's previous time spent on Facebook or Instagram, which is typically combined to precisely target an individual with tailored ads, won't be used.
“While this new choice is designed to give people an additional control over their data and ad experience, it may result in ads that are less relevant to a person’s interests,” Meta said in a blog post. “That means people will see ads that they don’t find as interesting. This drop in relevance is inevitable given that drastically reduced data is being used to show these less personalized ads to people.”
People who choose the new option will see ad breaks that can't be skipped for a few seconds, Meta said.
European Union regulators had accused Meta of breaching the 27-nation bloc's digital rules when it gave user the option to pay a monthly fee to avoid being targeted by ads based on their personal data.
The U.S. tech giant had rolled out the option after the European Union’s top court ruled Meta must first get consent before showing ads to users, in a decision that threatened its business model of tailoring ads based on individual users’ online interests and digital activity.
The company also said Tuesday it's slashing monthly subscription prices for the ad-free option. Web users will pay 5.99 euros ($6.36), down from 9.99 euros previously, while iPhone and Android users will be charged 7.99 euros instead of 12.99 euros, which includes commissions charged by the Apple and Google mobile app stores.
Meta's new subscription model could hit the company's lucrative digital ad business in one of its biggest markets. The company said it has already factored the new offering into its most recent business outlook and financial guidance.
The options are available to users 18 and older in the EU’s 27 member countries, plus Switzerland, Norway, Iceland and Liechtenstein.