Meta Cuts EU Facebook and Instagram Subscription Fees by 40%

Meta has lowered the price of its ad-free subscription services for Facebook and Instagram by 40 percent for users in the European Union, aiming to align with regional regulatory requirements. According to a CNBC report, the company will also allow EU users to access Facebook and Instagram for free if they agree to view ads based on a reduced set of user data.

Initially launched in October 2023, Meta’s ad-free subscription service was introduced to comply with EU regulations targeting anti-competitive practices among tech companies. This initiative also followed a substantial $400 million fine imposed by EU regulators for privacy law violations.

Meta’s President Nick Clegg stated on Threads that the adjustments not only meet but also exceed EU regulatory requirements. Subscription prices in the EU will now be reduced from 9.99 euros to 5.99 euros for desktop users and from 12.99 euros to 7.99 euros on iOS and Android devices.

For users who opt for the free, ad-supported version, ads will be based on minimal data, including age, gender, location, and user engagement with ads, which Meta notes may make these ads less aligned with personal interests. Additionally, some advertisements in this free version are designed to deliver value to advertisers and are non-optional for users.

EU regulations have slowed Meta’s ability to roll out new services in the region, as opposed to the more relaxed regulatory environment in the US. For instance, Meta’s Threads service was only introduced to EU users months after its US launch in 2023.

Pedro Pavón, Meta’s global policy director, commented that while EU regulations make it challenging for ad-supported companies, he views personalized ads as vital to maintaining a free internet by enabling relevant brand and product connections.

Investors and market watchers are likely to monitor these regulatory adjustments to gauge their impact on Meta’s business model and long-term investment prospects.