Meta Risks EU Fines, Sticks With Pay-Or-Consent Model

Facebook, Instagram, and WhatsApp owner Meta Platforms will not change its pay-or-consent model despite risking hefty fines from the European Union (EU), according to an exclusive report by Reuters. Under the model, users can share their information for advertising purposes or pay a subscription to keep their data private.

The European Commission, the EU’s executive arm, has been at odds with Meta ever since it first introduced its new model in 2023. In July 2024, the Commission initiated an investigation to determine whether the company’s pay-or-consent model complies with the Digital Services Act (DSA).

The Act is widely regarded as one of the most stringent and comprehensive pieces of digital legislation in the world. Failure to comply with the DSA, and specifically with the changes proposed by the regulators, could result in fines of up to 5% of the company’s daily worldwide earnings.

The investigation was set to wrap up by March of this year, and in April, Union regulators issued an antitrust order against Meta. By June, the EU had warned Meta that it would incur daily fines if it failed to comply with the order.

In November 2024, Meta adjusted its model to use less personal information from users. However, this change proved insufficient to meet the EU’s demands. Meta won’t propose any further changes to its model until circumstances change, according to a Reuters anonymous source.

Meta declined to comment on the latest developments and instead referred to its previous statements.

“A user choice between a subscription for no-ads service or a free ad-supported service remains a legitimate business model for every company in Europe – except Meta,” a Meta spokesperson said following the Commission’s original ruling on June 27.

“We are confident that the range of choices we offer people in the EU doesn’t just comply with what the EU’s rules require – it goes well beyond them,” they continued.