The change applies to users within the EU who do not pay for Facebook and Instagram, and comes after threats of high fines.
META's new ads will be less tailored, and will only be based on data collection from the current moment the user is active on the services. Moreover, only the user's gender, age, and location will be used.
However, users must actively opt out of the more targeted ads. The changes will be introduced "in the coming weeks".
The EU Court of Justice ruled in October that Meta must minimize the collection of user data for creating targeted ads.
"Social media companies like Facebook cannot use all personal data they collect to create targeted ads without time limits and without distinguishing between different types of data," the court wrote then.
The EU Commission accused Meta last summer of violating the union's digital market laws, DMA, after introducing a new subscription model last year that, among other things, made it possible to avoid ads – if you paid for it.
META risked fines of up to ten percent of the company's global revenue if it did not change the user terms.
