Meta bows to EU regulators again: Facebook and Instagram reduce ad-free subscription prices by up to 40% in the EU

A year ago, Meta bowed to EU regulators, launching ad-free subscription versions of its two major social media platforms, Facebook and Instagram, specifically for the European market. Now, Meta is taking a further step by significantly reducing the subscription prices and introducing less targeted advertising options. On Tuesday, November 12, Eastern Time, Meta updated its company blog to announce a reduction in the subscription fees for the ad-free versions of Facebook and Instagram launched in the EU. Starting this Wednesday, the monthly subscription fee for the web version will drop from €9.99 to €5.99, a decrease of 40%, while the mobile subscription fee on Apple iOS and Google Android will fall from €12.99 to €7.99, a reduction of 38.5%. For each additional Facebook or Instagram account subscribed, the web version will charge €4 per month, while the iOS and Android versions will charge €5 per month. Meta stated that the previous pricing was in line with industry peers, and the new lower pricing means that the company's subscription service will become one of the cheapest among its competitors. Existing subscribers do not need to take any action; their fees will be automatically reduced. Meta also mentioned that the company recently called on all EU users to choose their preferred advertising experience on Facebook and Instagram. This time, the company will again urge them to decide whether they are willing to subscribe to the ad-free version at a lower price. At the same time, Meta announced that it will introduce less personalized advertising in the EU. In the coming weeks, EU users who choose to use the ad-supported versions of Facebook and Instagram for free will be able to opt for "less personalized ads." Meta explained that the less personalized ad option relies on less data, so ads will be displayed based on context, meaning the specific content a person sees during their sessions on Facebook and Instagram, along with a minimal set of data points—including age, location, gender, and how individuals interact with ads. In this data environment, Meta will introduce ad interruptions, allowing advertisers to connect with a broader audience, meaning that users who choose less personalized ads will see some unskippable ads for a few seconds. Meta introduced the background for launching this new type of advertising, stating that a year ago, to comply with EU regulatory requirements, including the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA), the company launched the ad-free subscription service. Despite Meta's efforts to comply with EU regulations, it continues to receive additional demands from regulators that exceed legal requirements. In response to this feedback and to continue providing Meta's services for free to as many EU citizens as possible, Meta will launch new advertising options for EU users. Nick Clegg, Meta's President of Global Affairs, stated on another social media platform, Threads, that the announced price reduction for the ad-free version and the new advertising options "meet regulatory requirements and exceed EU legal obligations." Meta's Global Policy Director Pedro Pavón posted on LinkedIn the same day, stating that EU regulators make it difficult for online advertising companies to operate in the region, but he believes that the business of providing personalized advertising represents "the foundation of the modern free internet," allowing people to "connect with the most relevant brands and products in a seamless and unobtrusive way." Therefore, he anticipates that "even when faced with multiple equal choices, most people will still choose our personalized advertising services." Also on Tuesday, CNBC reported, citing informed sources, that the well-known American activist investment fund ValueAct has acquired a $1 billion stake in Meta. It is currently unclear what specific plans ValueAct has for Meta, but sources indicate that the fund's CEO Mason Morfit supports broader investments in artificial intelligence (AI) by Meta. The report noted that ValueAct has long invested in technology companies and is generally considered to be more constructive and collaborative than other activist funds. For example, it once signed an information-sharing agreement with Disney when Disney was preparing to engage in a proxy battle with another well-known activist investor, Nelson Peltz's Trian Partners