Meta’s advertising revenue has slowed since the European Union introduced its Less-Personalized Ads model earlier this year. The company disclosed the trend during an earnings briefing on Wednesday.
The EU model lets users choose whether to receive personalized ads. Many users have opted for the less personalized option since it became available.
Meta reported weaker ad sales growth than in previous quarters. The slowdown coincides with the rollout of the new EU privacy choice.
Less personalization limits how precisely Meta can target advertisements. Advertisers often pay more for campaigns aimed at specific audiences.
The change stems from EU regulations requiring user consent for data-driven advertising. Meta introduced the model at the start of the year to comply.
The company continues to face pressure from regulators over its data practices. Similar rules could spread to other markets in the future.
Meta has not said how many European users have chosen less personalization. The financial impact remains difficult to measure precisely.
