Meta fined €200m over Consent or Pay
The EU has today fined Meta €200m under the Digital Markets Act (DMA) for its Consent or Pay model which the Commission says is not compliant with the DMA.
Meta introduced the Consent or Pay model in November 2023 as a response to pressure from privacy authorities. Under this advertising model, EU users of Facebook and Instagram had a choice between consenting to personal data being used for personalised advertising or paying a monthly subscription for an ad-free service.
The Commission says this approach was not compliant with the DMA, arguing that “users should be able to get a Facebook or Instagram equivalent to the personalised ad service, but based on less of their data.”
Under the DMA, gatekeepers such as Meta must seek users' consent for combining their personal data between services. “Meta's model also did not allow users to exercise their right to freely consent to the combination of their personal data,” the Commission stated.
Meta said in a statement; “The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards. This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service. And by unfairly restricting personalized advertising the European Commission is also hurting European businesses and economies.”
Meta now has 60 days to comply with the decision, or it may face further fines. The Commission also fined Apple €500 million today under the DMA over an app store related issue.
The European Commission commented; “The two decisions come after extensive dialogue with the companies concerned allowing them to present in detail their views and arguments.”
See: