Meta has long been at odds with European Union officials over its approach to targeted ads on facebook and instagram. The company hopes to appease regulators with facebook-and-instagram-to-offer-subscription-for-no-ads-in-europe/” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:some changes;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “> to its advertising model on the block, which includes lowering the price of its . Starting November 13, the plan will cost 40 percent less: 6 euros ($6.36) per month for web sign-ups and 8 euros ($8.48) for those who subscribe on a device iOS or Android. The rate for each additional facebook and instagram account is €4 per month on the web and €5 via mobile.
The company will automatically reduce current subscribers to the lowest price. It says it will once again ask users on the block if they want to register.
When they see this message (which can only be ignored for a certain period of time), there will be a third option for EU facebook and instagram users to choose from. Those who don't want to pay a subscription can choose to only see ads based on what they see in a given session in the apps. Meta will also take into account some key data markers, such as “a person's age, location, gender, and how they interact with ads.”
These less personalized ads will naturally not be as tailored to a given user's interests, the company notes. As such, people are less likely to click on such ads. To compensate for that (and make sure this option doesn't hit Meta too hard in the pocket), people who choose the less personalized ads option will sometimes encounter ads that can't be skipped. According these will be displayed in full screen.
“These ad breaks are common in other services and are already offered by many of our competitors,” says Meta. “This change will help us continue to provide value to advertisers, ensuring we can offer people a less personalized advertising experience at no cost.”
Targeted ads are Meta's biggest revenue generator, but EU officials have reportedly been pressuring the company to offer a free, less personalized option in its apps. Meta has argued that would negatively affect its results. Although it has apparently given in to officials' requests, the non-skippable aspect of the ad can be interpreted as malicious compliance as it worsens the user experience.
Meta claims that these changes to its advertising model “meet the demands of EU regulators and go beyond what is required” by the bloc's laws. The company introduced its ad-free subscription a year ago to comply with laws such as the Digital Markets Act (DMA), as well as stricter interpretations of the General Data Protection Regulation. Previously, users were ordered to block before being shown personalized ads.
However, the EU did not much like the approach without paid advertising. Research is underway into the “consent or payment” model. In July, the EU said in its preliminary conclusions that Meta agreed with this plan.
These latest changes are said to be Meta's attempt to solve the case, but according to the DiaryEU talks with the company have not concluded. The bloc's regulatory body has until the end of March to complete its investigation and make a final decision. If it determines that Meta has indeed violated the DMA, the company could be forced to pay a fine of up to 10 percent of its annual global revenue. Depending on its total revenue for 2023, it could have to pay up to approximately $13 billion.
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