Meta Bows to Pressure Over Privacy Concerns
LONDON (AP) — In a move aimed at addressing concerns over data privacy and digital competition in Europe, social media giant Meta has announced that users of Facebook and Instagram will be given the option to see less personalized ads without paying for an ad-free subscription.
This development comes as Meta faces pressure from regulators in Brussels over its business model, which relies heavily on targeted advertising based on individual users' online interests and digital activity. The company has been offering European Union users an ad-free subscription option for about a year to comply with the continent's strict data privacy rules.
Less Personalized Ads: A New Option
According to Meta, users who opt out of personalized ads will still be able to choose between the free version and the paid ad-free subscription. However, they will also have an additional option to see digital ads that are less targeted based on their data. These ads will be shown only during the user's current session on Facebook or Instagram, going back no more than two hours, plus minimal personal information such as age, location, gender, and engagement with ads.
This means that Meta will not use data from all of a user's previous time spent on its platforms to target them with tailored ads. The company has emphasized that this new option is designed to give users more control over their data and ad experience, but it may result in ads that are less relevant to an individual's interests.
Impact on Advertising Business
The move by Meta could have significant implications for the company's lucrative digital advertising business, particularly in one of its biggest markets. The company has already factored the new offering into its recent business outlook and financial guidance. As a result, users who choose to see less personalized ads may be exposed to ad breaks that cannot be skipped for a few seconds.
European Union regulators had accused Meta of breaching the 27-nation bloc's digital rules when it gave users the option to pay a monthly fee to avoid being targeted by ads based on their personal data. The U.S. tech giant rolled out this option after the European Union's top court ruled that Meta must first get consent before showing ads to users, which threatened its business model.
Subscription Prices Slashed
In another move aimed at making the ad-free subscription more appealing to users, Meta has announced that it is slashing monthly subscription prices. Web users will now pay 5.99 euros ($6.36), down from 9.99 euros previously, while iPhone and Android users will be charged 7.99 euros instead of 12.99 euros, which includes commissions charged by the Apple and Google mobile app stores.
Target Audience
The new options are available to users aged 18 and older in the EU's 27 member countries, plus Switzerland, Norway, Iceland, and Liechtenstein. This move is part of Meta's efforts to comply with Europe's strict data privacy rules and address concerns over digital competition.
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Summary
In a move aimed at addressing concerns over data privacy and digital competition in Europe, social media giant Meta has announced that users of Facebook and Instagram will be given the option to see less personalized ads without paying for an ad-free subscription. This development comes as Meta faces pressure from regulators in Brussels over its business model.
Conclusion
The move by Meta could have significant implications for the company's digital advertising business, particularly in one of its biggest markets. The new options are available to users aged 18 and older in the EU's 27 member countries, plus Switzerland, Norway, Iceland, and Liechtenstein.