Meta Introduces Less Personalized Ads for European Users Amid Regulatory Pressure

Meta Platforms is set to provide users of Instagram and Facebook in Europe with the choice to engage with less personalized advertisements. This announcement, made on a Tuesday, is part of the company's effort to address the increasing scrutiny from regulatory bodies. The organization, headquartered in Menlo Park, California, is rolling out these alterations in direct response to the expectations laid out by EU officials. In the forthcoming weeks, individuals in the European Union utilizing the company’s social platforms, which operate on an ad-supported basis, will have the option to select ads categorized as contextual.

These ads will be determined by the content a user interacts with during a specific session. Users will receive advertisements that are also influenced by demographics such as age, gender, and location. Additionally, some of these ads may not be skippable for short durations. To further this initiative, Meta plans to decrease the cost of subscription services without ads by approximately 40% for users across Europe.

This decision coincides with escalating actions from European regulators aimed at reducing the dominance of major technology firms and providing equal opportunities for smaller businesses. This effort includes implementing the Digital Markets Act (DMA), which officially commenced earlier this year. A representative from the EU shared that the new framework established by Meta is solely governed by the company and does not receive endorsement or agreement from the Commission.

Speculation regarding the influence on ongoing non-compliance investigations would be premature. The overall goal remains to ensure that Meta swiftly achieves full compliance in this area. Recently, a ruling from Europe’s highest court stated that Meta should limit its use of personal data collected from Facebook for advertising purposes, affirming the stance of privacy advocate Max Schrems. The chair of the European Data Protection Board, Anu Talus, remarked positively about Meta's announcement, indicating that they appreciate the introduction of a new, less complex advertising option for users. The reports regarding Meta's strategy to implement less tailored ads initially emerged from a well-known publication.