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November 12, 2024
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META’s new ad model in Europe offers users more control over personalization, amid regulatory pressure

In response to rising regulatory scrutiny, Meta Platforms has announced a significant update for Facebook and Instagram users in Europe: an option to see “less personalized ads.” The Menlo Park, California-based company’s move aims to address privacy and data concerns raised by European Union (EU) regulators.

Over the next few weeks, users in the EU who access Meta’s platforms free of charge and agree to ads will be able to select ads that are “contextual” rather than deeply personalized. This approach means that advertising will be based on broader factors like the general content users engage with during a browsing session, rather than intricate personal data. In addition to this context-based model, ads will still be tailored to certain demographic information—specifically, age, gender, and geographic location. Some of these ads will be non-skippable for a brief period.

Meta also revealed plans to lower the cost of its ad-free subscriptions by approximately 40% for European users, a change intended to appeal to those seeking a fully ad-free experience.

The shift reflects Meta’s efforts to adapt to the EU’s Digital Markets Act (DMA), a sweeping regulation aimed at limiting Big Tech’s market dominance and fostering fair competition for smaller companies. This legislation, implemented earlier this year, is among the most stringent globally, placing intense pressure on major digital platforms to alter their business practices in the European market.

Despite Meta’s efforts, EU officials emphasize that the decision remains Meta’s responsibility alone, without endorsement or formal agreement from the European Commission. “The new model introduced by Meta is under Meta’s sole responsibility, and it is neither endorsed by nor agreed with the Commission,” an EU spokesperson stated. “Our objective is to bring Meta to full and effective compliance in this matter as soon as possible.”

This update follows a recent ruling by Europe’s highest court that restricts Meta’s use of personal data gathered from Facebook for targeted advertising, affirming the stance of privacy advocate Max Schrems. The ruling underscores the EU’s commitment to safeguarding user data and reinforcing transparency in advertising practices.

Anu Talus, chair of the EU’s privacy authority, the European Data Protection Board, expressed cautious optimism about Meta’s move: “While the solution still needs to be assessed, we welcome the fact that an important platform announces that it will offer a new choice for free with less detailed profiling for advertising.”

With this initiative, Meta demonstrates a willingness to meet the EU’s stringent data privacy expectations, yet it remains under regulatory observation as European officials seek meaningful compliance in the ongoing effort to protect user data and limit Big Tech’s influence.

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