The European Commission has warned Meta that it may face daily fines starting 27 June if its modified pay-or-consent advertising model fails to meet EU antitrust requirements under the Digital Markets Act.
Meta Platforms may be hit with daily fines if recent changes to its controversial pay-or-consent model are found to be insufficient under EU competition law, the European Commission warned on Friday.
The warning follows a €200 million ($234 million) fine issued in April for Meta’s previous violations of the EU’s Digital Markets Act (DMA), which aims to rein in the power of major tech companies.
Meta introduced its ad-based user choice model in November 2023, giving Facebook and Instagram users the option to either use the platforms for free while consenting to tracking, or pay for an ad-free experience. The EU determined that this original model breached the DMA between its launch and November 2024, when Meta implemented minor changes to reduce the use of personal data.
However, the European Commission said Meta’s recent modifications appear limited and may still fall short of full compliance.
"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," a spokesperson stated.
The Commission added that it is considering next steps, including imposing periodic penalty payments starting 27 June, if Meta continues to fall short. These daily fines could reach up to 5% of the company’s average daily global turnover.
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