📉 Pricing Changes for Subscribers
On November 13, 2024, Meta announced a 40% price cut for its ad-free subscription plan in the EU. Users subscribing through the web will pay €6 ($6.36) monthly, while those on iOS or Android will pay €8 ($8.48). Current subscribers will automatically switch to the lower rates. This change aims to comply with EU regulations urging Meta to offer a less personalized ad option.
👥 New Ad Options for Users
Alongside the price drop, Meta introduces a new ad choice for users. Those who opt not to pay can select less targeted ads that use basic data points like age and location. This shift ensures users can still access services without a fee, even as it may lead to less relevant ads. Notably, unskippable ads will appear in full-screen formats for those choosing this option.
🏛️ EU Regulatory Scrutiny
The European Union continues to investigate Meta's advertising methods. In July, preliminary findings suggested Meta violated the Digital Markets Act (DMA) with its "consent or pay" model. If the EU decides Meta has breached these regulations, the company risks fines that could reach up to $13 billion, around 10% of its global revenue for 2023.
📅 Ongoing Discussions
Meta claims these updates meet EU requirements and align with the Digital Markets Act. However, the regulatory discussions are still ongoing. By late March 2025, the EU plans to finalize its decision regarding Meta's advertising practices. The company hopes these new strategies will satisfy regulators while minimizing the impact on its advertising revenue.
Will Meta's new ad model benefit users?
