EU Cracks Down on Meta’s Ad Model Amid Privacy Concerns
Brussels, Belgium – June 22, 2025 — The European Commission has issued a stern warning to Meta Platforms Inc., stating that its controversial “pay or consent” advertising model may violate the Digital Markets Act (DMA)—a landmark regulation designed to curb the power of Big Tech and protect user privacy across the EU.
Meta’s model, introduced in late 2023, offers users a binary choice: either pay a monthly subscription to use Facebook and Instagram without ads, or consent to data tracking for personalized advertising. Critics argue that this approach pressures users into surrendering their data, undermining the principle of freely given consent enshrined in EU law.
Commission’s Preliminary Findings
In a formal statement, the Commission said Meta’s model “fails to provide a less personalized but equivalent alternative” to users who decline data tracking, as required under Article 5(2) of the DMA. The Commission emphasized that gatekeepers like Meta must not make access to core platform services conditional on user consent for data processing.
If Meta is found to be in breach, it could face daily fines of up to 10% of its global annual turnover, which could amount to more than $13 billion based on 2024 revenue figures.
Meta Responds
Meta maintains that its model complies with EU regulations and reflects a legitimate business model. A company spokesperson said, “We’ve engaged constructively with the Commission and introduced extensive changes to address their feedback,” including lowering subscription fees and offering less personalized ad options.
However, EU regulators remain unconvinced. Commissioner Thierry Breton stated, “The DMA is here to give users real choice—not force them into a privacy trade-off.”
Broader Implications
This case marks one of the most high-profile tests of the DMA since it came into effect in March 2024. It also follows a series of enforcement actions against other tech giants, including Apple and Google, as the EU seeks to rebalance digital power and strengthen consumer rights.
The Commission is expected to issue a final decision by March 2025. Until then, Meta faces mounting pressure to revise its ad practices—or risk becoming the poster child for non-compliance in the EU’s new digital era.
