Meta announced a price reduction for Facebook and Instagram ad-free accounts in Europe, in an attempt to appease EU regulators.

Meta’s “pay or consent” model has already run afoul of the EU, with regulators saying it is in violation of the Digital Markets Act (DMA). In its findings, the EU made clear that Meta’s binary approach doesn’t meet the legal requirements, saying the company must offer users a way to use the service for free without accepting personalized advertising and sacrificing their privacy.

“Today we make another important step to ensure full compliance with the DMA by Meta,” Thierry Breton, Commissioner for Internal Market, said at the time. “Our preliminary view is that Meta’s “Pay or Consent” business model is in breach of the DMA. The DMA is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access.”

Meta appears to be making some concessions, while still emphasizing its commitment to personalized ads. Instead, the company is lowering the price of its ad-free accounts, while offering a free option that relies on less personalized ads.

Today, we are announcing important changes to Facebook and Instagram in the EU, including reducing the price of subscription for no ads by 40%. Going forward, people based in the EU will still have the option to choose between subscribing for an ad-free experience or continuing to access our services for free. For those people who choose to continue using our services for free, they’ll now also be able to choose to see less personalized ads. However, we remain committed to personalized advertising, which will always be the cornerstone of a free and inclusive internet.

Users interested in the ad-free experience will pay significantly less, beginning Wednesday, November 13.

We will reduce the price of the monthly subscription from €9.99 to €5.99/month on the web, or from €12.99 to €7.99/month on iOS and Android. Each additional Facebook or Instagram account will be charged at €4/month on the web and €5/month on iOS and Android. While our previous price was firmly in line with peers, this lower pricing means that our subscription service will be one of the cheapest across our peers. Existing subscribers do not need to take any action – the price they pay will be automatically reduced. Although we recently asked everyone in the EU to choose their preferred ads experience on Facebook and Instagram, we will ask them again to decide if they would like to subscribe at this lower price point.

Meta doubled-down on its belief that personalized ads offer the best experience for users and businesses.

Personalized ads are valuable to both individuals and businesses because they allow people to connect with the brands and products that are most relevant to them. Personalized ads are particularly beneficial for small businesses, which make up over 99% of businesses in the EU and employ over 100 million people across the region, because they can reach customers most likely to be interested in what they offer in the most cost-effective way.

The changes we’re announcing today meet EU regulator demands and go beyond what’s required by EU law. And we remain steadfast in our view that personalized ads are the best experience for people and businesses – and because people understand that value, we expect that most people will choose our personalized ads service even with these expanded options.

We firmly believe that personalized ads are a vital component of the ad-supported internet that has enabled access to free online services for hundreds of millions of EU citizens and billions of people around the world. We will continue to advocate for regulations that support the responsible use of personalized advertising, allowing us to maintain the high-quality, free services that people have come to expect from us.