Meta's Pay-Or-Consent Model: A Double-Edged Sword for Users and Regulators

Meta Platforms, Inc. (Meta) has introduced a revised pay-or-consent model in the EU, offering users a choice between paying for an ad-free experience or consenting to targeted ads. While this model aims to comply with stringent digital regulations and diversify Meta's revenue streams, it has sparked controversy and legal challenges from consumer advocacy groups and regulators. This article explores the implications of Meta's revised model and the key legal and regulatory challenges it faces in the EU.

Meta's revised pay-or-consent model allows users to choose between paying a monthly subscription fee for an ad-free experience with reduced data collection or using the free version with targeted ads. This shift aims to empower users to make informed decisions about their data and platform experience while reducing Meta's dependence on ad revenue. However, the model has raised concerns about user agency, data privacy, and competition.

The European Consumer Organisation (BEUC) has criticized Meta's policy, arguing that it fails to address the fundamental issue of user choice and provides a degraded service to users who choose to protect their data. BEUC has urged European Union regulators to take action against Meta, alleging that the policy may violate consumer, data protection, and competition laws (BEUC, 2025).

In response to these concerns, the European Commission has informed Meta of its preliminary findings that the "pay or consent" advertising model fails to comply with the Digital Markets Act (DMA). The Commission's preliminary view is that this binary choice forces users to consent to the combination of their personal data and fails to provide them with a less personalized but equivalent version of Meta's social networks (European Commission, 2025).



If Meta is found to be in violation of the DMA, it could face significant fines, potentially up to 10% of its annual global turnover. For Meta, this could amount to as much as $13.4 billion based on its 2023 results (European Commission, 2025).

Meta's revised pay-or-consent model also raises questions about the value and cost of data privacy. By raising questions about the trade-off between user agency and data privacy, the model could encourage users to be more mindful of their online activity and take steps to protect their information. However, the model's success will depend on Meta's ability to address legal and ethical concerns, potentially offering more granular control over data collection and clearer opt-out options in the free version.

In conclusion, Meta's revised pay-or-consent model presents a double-edged sword for users and regulators. While the model aims to empower users and diversify Meta's revenue streams, it has sparked controversy and legal challenges from consumer advocacy groups and regulators. As the EU continues to refine its digital regulations, Meta may face additional challenges or changes to existing rules, potentially impacting its pay-or-consent model. To navigate these challenges, Meta must address user concerns, comply with regulations, and adapt its model to evolving legal and ethical standards.

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