Meta Platforms (NASDAQ:META) could soon face significant financial penalties from the European Union if its controversial advertising approach doesn’t meet regulatory standards. According to a report by Reuters on Friday, the European Commission has warned that Meta’s current “pay-or-consent” model may still violate the bloc’s strict digital competition rules.

This latest warning follows a €200 million ($234 million) fine imposed on the social media giant just two months ago for non-compliance with the Digital Markets Act (DMA)—a sweeping law designed to curb the dominance of major tech firms in the EU market.

The advertising framework in question, rolled out in late 2023, offers users on Facebook and Instagram two choices: agree to share personal data for targeted advertising or pay a monthly subscription to avoid data tracking. While Meta made tweaks to the system in early 2024 to restrict the scope of data usage, regulators remain skeptical.

“The Commission cannot yet confirm whether the changes satisfy the key compliance requirements set out in its prior decision,” a Commission spokesperson told Reuters.

Officials are currently evaluating Meta’s latest revisions and have stated that ongoing violations could lead to daily fines beginning June 27, 2025. These penalties could be steep—up to 5% of Meta’s global daily turnover, according to Reuters.

In a separate report, Reuters also noted that Meta has pushed back against the EU’s regulatory stance. The company has accused the European Commission of shifting expectations and claimed that its business model is being unfairly singled out. Meta argued it has engaged in good faith with regulators and made meaningful efforts to comply.

The showdown highlights the escalating tension between Big Tech firms and European authorities, as the EU continues to press for greater transparency and user control over digital data and targeted advertising.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.