Meta reportedly won't revise ad model despite EU fine risks

Meta Platforms is unlikely to implement further changes to its pay-or-consent model, according to sources familiar with the situation.

This decision may result in additional EU antitrust charges and daily fines.

In June, the European Commission warned Meta about potential penalties after limited adjustments were made to comply with the Digital Markets Act (DMA).

Meta was fined €200 million (US$234 million) in April for non-compliance with the DMA from November 2023 to November 2024.

Although it modified the model in November 2024 to limit personal data use for targeted ads, the Commission expressed further concerns.

Sources say Meta will not propose more changes unless circumstances significantly change, risking fines of up to 5% of daily global turnover starting June 27.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Meta’s standoff represents the most direct challenge to the EU’s regulatory authority

Meta’s apparent willingness to accept significant financial penalties rather than modify its business model marks a challenge to the EU’s regulatory framework.

The company has already been fined €200 million ($234 million) for its pay-or-consent model under the Digital Markets Act, yet appears prepared to face additional daily penalties of up to 5% of its global daily turnover rather than make further changes 1.

This approach differs markedly from Meta’s response to previous regulatory actions, such as when it implemented changes following a €1.2 million fine from Spain’s data protection authority in 2017 and after the €395 million penalty imposed by Ireland’s Data Protection Commissioner for GDPR violations 2, 3.

The standoff reflects a strategic calculation that the potential business impact of further compliance changes outweighs even substantial financial penalties, potentially setting a precedent for how other tech giants respond to EU regulations.

Meta’s stance challenges the enforcement mechanism of the DMA, which relies on financial penalties to compel compliance rather than direct intervention in business operations.

2️⃣ The dispute reflects a fundamental clash between data-driven business models and EU regulatory vision

The conflict over Meta’s pay-or-consent model highlights the incompatibility between data-driven advertising business models and the EU’s regulatory framework.