Meta Faces €200 Million Fine, Refuses Further Changes to Ad Model

Meta, the parent company of Facebook and Instagram, has decided not to make further changes to its controversial “pay-or-consent” advertising model, despite the looming threat of daily fines and additional antitrust charges from European regulators. This decision comes after the European Commission raised concerns over Meta’s compliance with the Digital Markets Act (DMA) and warned of potential penalties. Meta believes that the limited adjustments it made late last year are sufficient and sees no need for additional changes.

In April, the European Commission fined Meta €200 million, citing violations of DMA rules related to data collection and ad targeting under the “pay-or-consent” system. These rules, which came into effect in November 2023, aim to curb the dominance of major tech firms by enforcing strict behavioral standards. Meta attempted to adjust its strategy in November 2024 by reducing the amount of personal data used for users who refuse to pay for ad-free versions of its platforms. However, EU officials deemed these adjustments insufficient, leading to further scrutiny and warnings in June.

Meta’s stance indicates that the company is prepared for more legal challenges. Sources suggest that fines could reach up to 5% of Meta’s daily global turnover if the EU finds continued non-compliance, with these penalties potentially enforced retroactively from June 27. Meta has declined to provide fresh comments, referring reporters to earlier statements where the company expressed confidence in the legal soundness of its ad consent model and accused the Commission of unfairly targeting its business model.

Earlier this week, both Meta and Apple officially filed appeals against previous EU decisions under the DMA, which had imposed a total of €700 million in fines between them. Apple was fined €500 million in March for allegedly blocking developers from guiding users toward better deals outside its App Store, a practice outlawed under the DMA as “anti-steering.” Apple responded by stating that the Commission’s actions exceed what the DMA legally requires and that the demanded changes are unclear and could harm both developers and users. Apple has since adjusted some App Store policies to avoid further fines and plans to argue its case in court.

Meta also filed its formal appeal this week, defending its “pay-or-consent” model. Introduced in Europe in late 2023, this model offers users a choice: pay a monthly fee for an ad-free experience or agree to personalized ads. After being flagged by regulators, Meta updated its approach in November 2024 to rely on less detailed personal data for users who don’t pay. The company argues that this revised system respects users’ rights and fulfills the DMA’s consent requirements. In June, Meta made additional minor adjustments to the language and interface users see when making their choice, but the Commission dismissed these tweaks as insufficient. Meta maintains that it has gone above and beyond the requirements and believes the Commission’s position is legally flawed.

As both tech giants prepare for a lengthy legal battle, the conflict between Silicon Valley and Brussels over privacy, user choice, and digital dominance continues. The tech companies have accused the EU of heavy-handed regulation that risks stifling innovation and ultimately harming consumers. The outcome of these appeals will significantly impact the future of digital markets and the balance of power between tech giants and regulators.