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Meta Cuts Ad-Free Facebook, Instagram Subscription Rates Amid Pressure From EU Regulators

BNE News Desk , November 13, 2024
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California: Meta has reduced the cost of its ad-free subscription services for Facebook and Instagram in the European Union, lowering monthly prices by 40 percent in response to regulatory demands. The company announced that desktop users will now pay Rs 536.67 monthly, down from Rs 894.84,  while mobile users will pay Rs 715.70  instead of Rs 1,163.57. This change comes shortly after Meta launched the ad-free option in October 2023, following a major EU regulation aimed at reducing monopolistic practices in tech.

In addition to the ad-free model, Meta will continue to provide a free version of its social platforms to EU users who opt to view ads. However, ads in this model will be based on a restricted set of user data, including age, gender, location, and general ad interaction, which may result in less personalised ad content. To enhance value for advertisers, Meta said this version will include unskippable ads.

Meta’s Policy Chief Stresses Importance Of Personalised Ads For Free, Accessible Internet

Meta reduces Facebook and Instagram ad-free subscription prices in the EU by 40% 
Representative Image

Nick Clegg, Meta's President, shared that these changes align with and even exceed EU regulatory standards. The company faced a €400 million fine in 2023 for breaching EU privacy laws, which contributed to the implementation of these adjustments. Meta has expressed frustration with the restrictive regulatory landscape in Europe, which has impacted the speed of product launches. For example, the company delayed its Twitter-like Threads service by nearly six months after it debuted in the U.S. 

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Pedro Pavón, Meta’s global policy director, highlighted the significance of personalised advertising, calling it crucial to sustaining a free and accessible internet while providing consumers with relevant brand connections. Pavón expects that despite the choice, many users will continue to opt for the more personalised ad service.