One year ago, $Meta Platforms (META.US)$ Bowing to the EU regulators, Meta Platforms' two major social media platforms, Facebook and Instagram, launched ad-free versions tailored for the European market. Now, Meta goes a step further by significantly reducing the subscription fees for the ad-free versions and introducing less targeted ad options.

On Tuesday, November 12th, Eastern Time, Meta updated its company blog post announcing a decrease in subscription fees for the ad-free versions of Facebook and Instagram available in the EU. Starting this Wednesday, the monthly subscription fee on the web platform will be reduced from 9.99 euros to 5.99 euros, a 40% decrease, while on mobile platforms using Apple's iOS and Google's Android systems, the monthly fee will be reduced from 12.99 euros to 7.99 euros, a 38.5% decrease.

For each additional Facebook or Instagram account subscribed to, the monthly fee on the web platform is 4 euros, and on iOS and Android platforms, it is 5 euros per account per month.

Meta stated that its previous pricing was in line with competitors, and the new lower pricing means the company's subscription service will be one of the most affordable in the industry. Existing subscribers do not need to take any action as the fees they need to pay will automatically decrease.

Meta also mentioned that the company recently urged all EU users to choose the ad experience they prefer on Facebook and Instagram. This time, the company will once again call on them to decide whether they are willing to subscribe to the ad-free versions at a lower price.

At the same time, Meta announced that it will launch less personalized ads in the European Union. In the coming weeks, European users who choose to use the ad-supported versions of Facebook and Instagram for free will be able to opt for 'less personalized ads'.

Meta introduced that the less personalized ad options mentioned above rely on less data, so Meta will only show ads based on context, what individuals see in specific conversations on Facebook and Instagram, and a minimal set of data points - including age, location, gender, and how individuals interact with ads. Meta will introduce ad interruptions in this data environment to connect advertisers with a wider audience, meaning that if users choose less personalized ads, they will see some ads that cannot be skipped within a few seconds.

Meta introduced the background for launching the new type of ads, stating that a year ago, to comply with EU regulatory requirements including the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA), the company introduced ad-free subscription services. Despite Meta's efforts to comply with EU regulations, they have continued to receive additional requests from regulatory agencies that go beyond legal requirements. In response to this feedback and to continue providing Meta's services for free to as many EU citizens as possible, Meta will introduce new ad options for EU users.

Meta's Global Affairs Chief Nick Clegg stated on the social media platform Threads on Tuesday that the announcement of the ad-free version price reduction and new ad choices 'meets the requirements of regulatory agencies, beyond what EU law demands.'

On the same day, Meta's Global Policy Director Pedro Pavón posted on LinkedIn that EU regulatory authorities make it difficult for online advertising companies to operate in the region, but he believes that providing personalized ads represents the 'foundation of the modern free internet,' allowing people to connect with the most relevant brands and products 'seamlessly and without disruption.' Therefore, he expects that 'even in the face of multiple equal choices, most people will still choose our personalized ad service.'

Also on Tuesday, CNBC reported citing sources familiar with the matter that the well-known U.S. activist investment fund ValueAct has acquired $1 billion worth of Meta shares. It is currently unclear what specific plans ValueAct has for Meta, but sources claim that the fund's CEO Mason Morfit supports Meta's broader investments in artificial intelligence (AI).

The report pointed out that ValueAct has long invested in technology companies and is generally seen as more constructive and cooperative than other activist funds. For example, it has signed an information sharing agreement with Disney in the past when Disney was preparing to engage in a proxy fight with another well-known activist investor, Nelson Peltz's Trian Partners.

Editor/Somer