Meta vs EU: Standoff Over Pay-or-Consent Model Escalates
Meta Platforms Inc., the parent company of Facebook and Instagram, is standing firm on its controversial "pay-or-consent" advertising model despite mounting pressure and potential daily fines from the European Union. Sources close to the matter revealed that the tech giant is unlikely to offer additional changes, even after warnings from the European Commission.
What Is the Pay-or-Consent Model?
Introduced as part of Meta’s compliance with Europe’s Digital Markets Act (DMA), the pay-or-consent model gives users two options:
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Pay for an ad-free experience, or
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Consent to personalized ads, allowing Meta to use their personal data.
This approach quickly drew regulatory attention, with the Commission arguing that it forces users into a privacy trade-off that contradicts the DMA’s goal of giving users genuine choice.
Why Meta Won’t Budge
Meta has already made some adjustments to the model—particularly in November 2024, when it reduced the volume of personal data used for targeted advertising. However, the EU Commission remained unconvinced and warned Meta in June 2025 of possible daily penalties.
Despite these warnings, sources familiar with Meta’s strategy told Reuters that the company will not introduce further changes unless circumstances shift dramatically.
📉 Meta shares dropped 1.7% in mid-session trading after news of its rigid stance broke.
The Cost of Resistance
If Meta continues with its current model unchanged, it could face:
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Fresh antitrust charges
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Daily fines of up to 5% of its global daily turnover
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Further scrutiny under the DMA, which aims to rein in Big Tech's dominance
Back in April 2025, Meta was already fined €200 million ($234 million) for DMA violations covering the period from November 2023 to November 2024.
Meta’s Defense
While Meta declined to comment on the latest developments, it previously stated that:
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It complies with the DMA
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Its offerings go beyond the law's requirements
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The EU Commission is discriminating against its business model
Meta insists that the pay-or-consent approach gives users a fair choice between data-driven personalization and a paid alternative.
What Happens Next?
The European Commission has yet to make a final decision, but new charges and fines could begin within weeks. With tensions escalating, the outcome of this standoff could set a powerful precedent for how Big Tech operates under Europe’s expanding digital regulations.
Final Thoughts
Meta’s refusal to further amend its pay-or-consent model sets the stage for a landmark legal and regulatory battle in the EU. With billions of euros potentially at stake and digital privacy on the line, the coming weeks could reshape how data and consent are handled across the tech industry.
⚖️ Do you think Meta's model respects user privacy, or is it just another way to force data collection? Share your thoughts in the comments!
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