Meta(META.US) cuts subscription fees for Facebook and Instagram in Europe by 40% to meet regulatory requirements.

Zhitong Finance learned that Meta (META.US) is lowering the price of its ad-free subscription version of Facebook and Instagram for users in the European Union by 40% to comply with regulations in the region. The company said it will cut its monthly subscription service price in the EU from 9.99 euros for desktop users to 5.99 euros, and from 12.99 euros to 7.99 euros for iOS and Android users. The social media company said in a blog post on Tuesday that it will also give EU users free access to Facebook and Instagram if they agree to see ads based on limited user data.Meta originally launched its ad-free subscription service in the EU in October 2023, after the region's regulators fined the company more than $400 million for violating EU data privacy laws. The subscription service was also effective after the region's regulators fined the company more than $400 million for violating EU data privacy laws.Meta's president Nick Clegg said in a post on Threads on Tuesday that the changes announced today "comply with the requirements of European regulators, and go beyond the requirements of European law."The company said if EU users choose the "less personalized option" to access Facebook and Instagram for free, they will see "ads that may not be as relevant to their personal interests." Meta said in this version, it will show ads based on "the smallest data set possible," including users' age, gender, location, and how they interact with ads. In addition, Meta said EU users who choose the free option will also see non-skippable ads that are designed to "provide value to advertisers."The strict regulations in the EU, compared with less-regulated regions such as the United States, have affected Meta's ability to quickly launch new services in the region. For example, Meta launched its Threads service, which is similar to Twitter, in the United States in the summer of 2023, and it took nearly half a year to make the service available to European users.Pedro Pavón, Meta's global policy head, said that while EU regulations make it difficult for companies based on online advertising to operate in the region, he believes the business practice of providing personalized ads represents "the foundation of a modern, free internet," allowing people to "connect with the brands and products that matter most to them in a seamless, interruption-free way." Pavón said in a post on LinkedIn: "That's why I believe, even with a few equal options, most people will still choose our personalized advertising service."