Meta Adjusts to EU Demands with 40% Price Reduction on Ad-Free Subscription

Meta Cuts Prices on Ad-Free Social Media in the EU

Meta has reduced the price of ad-free subscriptions for its platforms, Facebook and Instagram, by 40% for users in the European Union.

This shift is part of Meta's compliance strategy with regulatory demands across the EU that pushed the social media giant to re-evaluate their data usage and subscription models

The subscription now costs €5.99 monthly for desktop users, down from €9.99, and €7.99 for iOS and Android users, reduced from €12.99.

New Options for Data-Conscious Users

In addition to reducing prices, Meta has introduced a new “less personalised” ad experience for EU users who wish to use Facebook and Instagram for free.

This ad-supported model will now show users ads based on a limited set of data points such as age, gender, location, and interaction history with ads, rather than on a deeper, individualised data profile.

Meta’s blog noted,

“For those people who choose to continue using our services for free, they’ll now also be able to choose to see less personalised ads.”

However, the company stressed its commitment to personalised advertising, which it sees as “the cornerstone of a free and inclusive internet.”

Meta’s Compliance and Regulatory Pushbacks

Meta’s ad-free subscription service first launched in October 2023 to align with EU regulations aimed at reducing monopolistic practices in tech and protecting users' data privacy.

The Digital Markets Act (DMA) and General Data Protection Regulation (GDPR) serve as the legislative backbone prompting these changes.

Regulatory pressure intensified after Meta faced a €400 million fine for breaching EU privacy rules.

Nick Clegg, Meta’s President, commented on the latest adjustments in a post on Threads on 12 November, stating,

“The changes we’re announcing today meet EU regulator demands and go beyond what’s required by EU law.”

Offering Choice Amid Tightening Regulation

With this recent price reduction and ad model adjustment, Meta is making it clear that it wants to remain a dominant social platform while offering EU users a choice in how they engage with its services.

Pedro Pavón, a Meta global policy director, highlighted the challenge of balancing user choice with a business model reliant on advertising revenue.

He remarked that personalised ads are essential to “a modern, free internet” and let users “connect with the brands and products most relevant to them in seamless and non-disruptive ways.”

Despite this commitment, Meta faces growing scrutiny as it navigates regional demands for transparency and restraint in data use.

Social Commerce and the Rise of Influencer Power

Meta’s adaptations arrive at a time when social commerce is transforming how consumers discover and buy products online.

The platform is keen to sustain its relevance in an ecosystem that has seen competitors like TikTok surpass $10 billion in consumer spending, driven by its unique influence on consumer culture.

With Generation Z increasingly engaging with influencer content, brands now look to influencers as crucial intermediaries for reaching new audiences.

As PYMNTS recently noted, “Influencers have become key touchpoints in the customer journey,” highlighting the shifting consumer landscape.

Meta’s strategy to align with regulatory demands while fostering an advertising model that retains appeal for both brands and users is crucial as it competes in the evolving world of social commerce.