EU Threatens Meta with Daily Fines Over Pay-or-Consent Model

Meta Platforms, the U.S. social media behemoth, faces the prospect of substantial daily fines if the limited changes it proposed to its pay-or-consent model fail to meet EU antitrust order requirements. The European Commission, responsible for enforcing competition within the EU, issued this stark warning just two months after levying a 200-million-euro penalty on Meta for infringing upon the Digital Markets Act (DMA), designed to curb Big Tech's influence.

According to the EU executive, Meta's pay-or-consent model, which was introduced in November 2023, was in violation of the DMA until November 2024. At this time, Meta altered its approach to reduce personal data usage for targeted advertising purposes. The Commission has been closely examining these changes ever since. This model allows users of Facebook and Instagram to either agree to be tracked for a free, advertisement-funded service or opt for an ad-free experience by paying a fee.

The EU's competition watchdog indicated that Meta's adjustments to the model have been minimal. "The Commission cannot confirm at this stage if these are sufficient to comply with the main parameters of compliance outlined in its non-compliance Decision," stated a spokesperson. The Commission is considering further steps, including the potential for periodic penalty payments beginning on June 27, 2025, if compliance is not achieved. Meta has yet to comment on this development.

(With inputs from agencies.)