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Meta to Reduce Personalized Ads in Europe in Response to Regulatory Pressure

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Meta Platforms has announced a major change to its advertising model for Instagram and Facebook users in Europe. In an effort to comply with growing regulatory pressures, the tech giant revealed that it will allow users to opt for “less personalized ads.” This new policy, set to roll out in the coming weeks, will offer users in the European Union (EU) an alternative to the highly-targeted ads that have been a staple of Meta’s platforms for years.

Under this revised model, EU users will be able to select ads based on the “context” of their current session on the platform, meaning that the ads will be relevant to the content a user is viewing at the moment. These ads will be less personalized than the data-driven ones that Meta typically displays, which are tailored to users based on their activity, interests, and behaviors. In addition to this contextual targeting, the ads will still consider basic demographic information such as age, gender, and location, with some ads being unskippable for a few seconds.

The company also plans to lower the cost of its ad-free subscription service by approximately 40% for users in Europe, providing an incentive for those who prefer to avoid ads entirely. This subscription service will continue to be available, giving users an alternative option for a more customized, ad-free experience.

This move from Meta comes in response to increasing scrutiny from European regulators who are intensifying their efforts to rein in the influence of Big Tech. The European Union has introduced measures such as the Digital Markets Act (DMA) to promote fair competition and curb anti-competitive practices in the tech industry. Meta’s decision to adjust its advertising practices is seen as an attempt to comply with these regulations and to address concerns about privacy and data collection.

Instagram Developing AI Tool to Create Custom Profile Pictures

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Instagram is reportedly working on a new feature that leverages artificial intelligence (AI) to allow users to generate customized profile pictures. This feature, currently being tested, would enable users to create unique and stylized avatars or images based on AI models, offering a fresh alternative to traditional profile photos. Although specific details about the feature remain scarce, it could significantly enhance how users present themselves on the platform by providing an automated, creative way to update their profiles.

The leak, discovered by developer Alessandro Paluzzi, revealed a new option in the app’s settings that invites users to “Create an AI profile picture” when updating their profile. Paluzzi shared a screenshot of the menu, sparking excitement about the potential of AI to personalize digital identities. The feature is still in development, with further testing likely to refine the technology before it becomes available to the wider user base.

In addition to Instagram, similar AI-driven tools are said to be in the works for Facebook and WhatsApp, both of which are also owned by Meta. This suggests that Meta may be planning to roll out AI-powered profile picture generation across its suite of platforms, offering users more opportunities to express themselves in creative ways. The integration of AI into the social media experience is becoming more prevalent, and Instagram is clearly taking steps to stay competitive in the space.

While Instagram’s focus on AI profile picture generation is generating buzz, it comes at a time when other changes are happening within the app. For instance, Instagram’s Head, Adam Mosseri, recently confirmed that the platform had abandoned the feature that automatically refreshed users’ feeds after a period of inactivity. This move reflects Instagram’s ongoing adjustments to its user experience, balancing new features with changes aimed at improving overall engagement and satisfaction. The AI profile picture generator could be a major addition to the platform, aligning with Instagram’s broader push to innovate and keep users engaged.

Meta Fires Employees for Misuse of Meal Allowances on Personal Purchases

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Meta has terminated around two dozen employees from its Los Angeles office for allegedly misusing company-provided meal credits, purchasing items such as acne treatment pads, wine glasses, and laundry detergent, according to a source familiar with the matter. The tech giant confirmed these dismissals after conducting an internal investigation, revealing that some employees used meal vouchers for personal items instead of food. Additionally, some workers reportedly had meals delivered to their homes rather than to the office, violating company policy.

Meta, known for its elaborate in-office dining services at its larger offices, offers meal vouchers to employees working in smaller locations without on-site food services. These credits—$20 for breakfast and $25 for both lunch and dinner—are intended to support staff working long hours at the office by covering meal costs. However, the investigation discovered that certain LA-based employees used the credits for non-food-related purchases or for meals consumed outside of work.

This news comes amid ongoing restructuring efforts at Meta. A Meta spokesperson, Tracy Clayton, acknowledged that the company has been making various organizational changes to align resources with long-term strategic goals. These changes have resulted in shifting some teams to different locations, reallocating employees to different roles, and eliminating positions when necessary. Meta did not disclose the total number of employees affected by these recent layoffs, which spanned across its divisions, including Instagram, WhatsApp, Facebook, and Reality Labs.

One of the more prominent individuals let go was Jane Manchun Wong, a well-known security researcher who had predicted upcoming social media features before joining Meta in June 2023 to work on Instagram and Threads. Wong’s layoff highlights the broader impact of Meta’s restructuring efforts, which follow the company’s more extensive layoffs last year.

In 2022, Meta laid off over 20,000 employees in multiple rounds of cuts, as part of an effort to reverse a period of revenue declines and stagnating user growth. CEO Mark Zuckerberg dubbed it the company’s “year of efficiency.” The company’s shares (META) have rebounded significantly, rising nearly 80% since last year.