Meta, the parent company of Facebook and Instagram, is not expected to make any more changes to its controversial “pay-or-consent” advertising model, despite the growing threat of daily fines and further antitrust charges from European regulators, according to sources familiar with the situation.
Last month, the European Commission raised concerns over Meta’s compliance with the Digital Markets Act (DMA) and warned the tech giant of potential penalties. However, insiders now say Meta sees no need to go beyond the limited adjustments it made late last year.
Is Meta bracing for more trouble?
In April, the European Commission fined Meta €200 million (around $234 million), arguing that its approach to data collection and ad targeting under the “pay-or-consent” system violated DMA rules. These rules came into effect in November 2023 and aim to rein in the dominance of major tech firms by setting strict behavioural standards.
Meta attempted to adjust its strategy in November 2024 by reducing how much personal data it uses for users who refuse to pay for ad-free versions of its platforms. But EU officials didn’t consider this sufficient, prompting further scrutiny and warnings in June.
Now, sources say Meta has no intention of offering additional changes unless circumstances dramatically shift. This stance means the company is bracing for more legal trouble.
One source mentioned that fines could reach up to 5% of Meta’s daily global turnover if the EU finds continued non-compliance, these penalties could be enforced retroactively from June 27.
Meta has declined to provide a fresh comment, instead referring reporters to its earlier statements. In those, the company insisted it is confident its ad consent model is legally sound and even goes beyond what the DMA requires. Meta also accused the Commission of unfairly targeting its business model.
The European Commission, for its part, also declined to comment on the latest developments.
Apple and Meta file appeals
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 had been hit with a €500 million penalty 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.”
Responding to the fine, Apple said the Commission’s actions go far beyond what the DMA legally requires. The company also complained that the changes being demanded are unclear and could hurt both developers and users.
Apple has since adjusted some App Store policies in a bid to avoid further fines and says it will argue its case in court.
As for Meta, it also filed its formal appeal this week, defending its “pay-or-consent” model once more. The company introduced the model in Europe in late 2023, offering users a choice: pay a monthly fee for an ad-free experience or agree to personalised 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 fulfils the DMA’s consent requirements.
In June, Meta went further by slightly adjusting the language and interface users see when making their choice, but the Commission dismissed these tweaks as minor and insufficient.
Meta, however, maintains that it has gone above and beyond, and believes the Commission’s position is not only wrong but legally flawed.
As both tech giants gear up for a lengthy legal fight, the showdown between Silicon Valley and Brussels over privacy, user choice, and digital dominance is far from over, with the former already accusing the EU of heavy-handed regulation that risks stifling innovation and ultimately harming consumers.
