Meta Wins EU Approval For Reduced-Data Ad Model, Avoids Costly Daily Fines
The tech giant’s revised pay-or-consent approach clears a major regulatory hurdle as Brussels signals closer oversight over how platforms use personal data.
Meta has secured approval from EU competition authorities for its updated advertising model, a development that shields the company from potential daily fines tied to Europe’s strict digital regulations.
The proposal, which reduces the amount of personal data used for targeted advertising within Meta’s pay-or-consent system, will be implemented next month and marks a significant moment in the ongoing negotiations between the platform and EU regulators.
The approval comes after months of scrutiny under the Digital Markets Act, which imposes obligations on large online platforms deemed to have systemic influence.
Meta had previously been fined for non-compliance, prompting a revision of how Facebook and Instagram gather information for personalised ads when users opt into paid or consent-based options.
Under the updated approach, users who choose not to provide full consent for data-driven advertising will see fewer personalised ads but can still access the core features of Meta’s services.
This adjustment aims to offer a clearer, more transparent choice while maintaining compliance with European privacy standards.
EU officials noted improvements in wording, interface design and clarity that help users understand the distinction between sharing full personal data and choosing a reduced-data experience.
The Commission emphasised that it will continue monitoring the model and gathering feedback to ensure the system remains aligned with the law’s obligations.
Meta’s changes reflect a broader shift in how global technology companies navigate Europe’s regulatory landscape, which has become one of the strictest worldwide on data handling and market dominance.
The updated model represents a compromise between operational feasibility and legal requirements as pressure grows for transparency and user control.
The company had faced the possibility of recurring financial penalties amounting to up to 5% of its average global daily turnover if regulators determined it was still in violation.
With the Commission’s acknowledgement of the revised approach, those fines are no longer under immediate consideration.
The Digital Markets Act seeks to limit the influence of major technology platforms by setting rules on data usage, interoperability, self-preferencing and advertising practices.
Meta’s case has become a reference point for how the law will be enforced and how companies might adapt to avoid punitive measures.
The approval also highlights Europe’s preference for resolving disputes through structured compliance rather than escalating penalties, particularly at a moment when digital policy tensions between the EU and the United States remain sensitive.
Still, regulators remain firm that platforms must offer meaningful choices, protect user privacy and avoid using their market position to limit competition.
Meta’s pay-or-consent model continues to face scrutiny from consumer groups and privacy advocates who argue that true consent should not hinge on payment.
However, the company maintains that its updated offering is transparent, legally defensible and designed to provide users with practical alternatives.
The Commission’s decision signals the beginning of ongoing supervision rather than the end of regulatory involvement.
Officials will review user experience, data usage patterns and the model’s impact on advertising markets as part of their long-term oversight responsibilities.
As Meta prepares to roll out the model next month, its interaction with European regulators will remain a focal point for the wider tech industry.
The ruling sets an important precedent for how companies balance personalised advertising with stringent privacy expectations across one of the world’s most heavily regulated digital markets.
