Meta made changes to its “pay or consent” model amid demands from EU regulators.
Facebook and Instagram users in the European Union will be able to choose a less personalised advertisement option, the platforms’ parent company Meta has said.
In an updated statement on Tuesday, Meta announced several changes to their “pay or consent” model that forces users to either pay for an ad-free service or see personalised advertisements.
The change came amid pressure from EU regulators.
“Going forward, people based in the EU will still have the option to choose between subscribing for an ad-free experience or continuing to access our services for free,” Meta said.
The company added that people in the EU who use its platforms for free can choose to see “less personalised ads”.
Meta also said it would reduce the price of ad-free subscriptions by 40%. This brings their ad-free monthly subscription price on the web down from €9.99 to €5.99 a month.
On smartphones, the price for a monthly ad-free subscription will drop from €12.99 to €7.99 a month, Meta said.
The price will automatically decrease for people who already subscribe to the ad-free service.
‘Pay or consent’ in breach of EU rules
The changes come after the European Commission said in July that Meta’s “pay or consent” advertising model failed to comply with the Digital Markets Act (DMA).
Under the DMA, Big Tech companies that are designated as “gatekeepers” must ask for users’ consent before combining their personal data with that of third-party services.
If a user does not consent to the use of their personal data for targeted advertising, they should have access to a less personalised alternative, the European Commission has said.
Meta unveiled its “pay or consent” model in November 2023, but the Commission said it did not allow users to “opt for a service that uses less of their personal data” but is otherwise equivalent.
“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.
The tech multinational says personalised advertising is the “cornerstone of a free and inclusive internet” and helps businesses boost revenue.
In the less personalised ad option, Meta said there would be ad breaks that cannot be skipped for a few seconds to “continue to provide value to advertisers”.
Users of the platforms in the EU will receive a notification about the changes asking them to choose an option.
