Meta, the social media giant, has slashed subscription prices for its ad-free versions of Facebook and Instagram by 40% for European users. This adjustment follows stringent actions by EU regulators aimed at curbing anti-competitive practices.
Launched in October 2023, the subscription service was a response to a $400 million fine for violating EU privacy rules. The new monthly rates are set at €5.99 for desktop users and €7.99 for mobile, a significant drop from the previous €9.99 and €12.99.
Nick Clegg, Meta's president, stated that these measures "go beyond what European law requires" and reflect the company's long-standing cooperation with regulators.
In addition to price cuts, Meta has rolled out a new option for free access supported by ads. These ads will be personalized based on basic user data such as age, gender, location, and user interactions, offering advertisers a chance to reach a broader audience despite being less targeted.
Users opting for this free version will encounter non-skippable ads. Pedro Pavón, Meta's global policy director, defended this model, asserting that personalized ads are "key to a modern, free internet," allowing users to discover relevant products and services.
Meta faces significant challenges in balancing regulatory compliance with its ad-based business model. The price reduction and introduction of free access indicate the company's efforts to adapt to legislative demands while maintaining an active user base.
Despite regulatory hurdles, Meta's stock has surged by 68% since the beginning of the year, positioning the company as the seventh most valuable firm globally, ahead of Tesla and Berkshire Hathaway, though still trailing behind giants like Saudi Aramco and Amazon.
This move signals Meta's readiness to change its strategies in response to the evolving regulatory landscape while preserving its leadership in the social media market.