The European Union is poised to impose fines on Meta for its “pay or consent” advertising model on Facebook and Instagram.

A preliminary ruling deems this model a violation of the Digital Markets Act (DMA).

This decision, expected to be announced soon, follows a July 2024 finding that the model restricts user choice in ad personalization.

Under the DMA and the Digital Services Act (DSA), the EU can fine Meta up to 10% of its annual revenue. This could potentially reach US$16 billion based on the company’s 2024 earnings.

This ruling may require Meta to allow European users to opt out of personalized ads without incurring a fee.

If enforced, it could significantly impact its European revenue, which accounts for nearly 25% of its total income.

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