EU Approves Meta’s Revised Ad Model

• Summary Meta has secured approval from EU antitrust regulators for its revised advertising model that uses less personal data.
• The decision means the company will avoid potential daily fines tied to breaches of the Digital Markets Act.
• Regulators plan to monitor the rollout closely, reflecting Europe’s ongoing scrutiny of Big Tech practices.

Regulatory Approval and Background

Meta’s pay‑or‑consent model, set to launch next month, was accepted by the European Commission on Monday. The company had faced a €200 million fine in April for violations of the Digital Markets Act covering Facebook and Instagram between November 2023 and November 2024. Adjustments were made to reduce reliance on personal data for targeted advertising. The Commission confirmed that the new proposal will be observed and evaluated, but fines are no longer under consideration.

The investigation highlights Europe’s determination to enforce compliance among large technology firms. Regulators have sought to balance enforcement with settlement to avoid escalating tensions with the United States. Meta risked daily fines of up to 5% of its global turnover if found in breach. Approval of the revised model signals a willingness to accept incremental changes rather than impose further penalties.

Details of the New Model

The updated approach introduces clearer wording, design changes, and transparency measures to remind users of their options. Individuals can either consent to share all their data for fully personalized advertising or choose to share less for limited personalization. Meta did not plan substantial changes beyond these adjustments despite the risk of fines. The Commission stated that feedback will be collected as the model is implemented.

The decision reflects ongoing efforts to ensure compliance with the DMA’s requirements. Regulators emphasized that effective user choice is central to the law’s intent. Meta’s model will be monitored to assess whether it meets expectations for transparency and fairness. The company’s willingness to adapt its proposal helped secure regulatory approval.

Broader Context and Implications

Europe’s stance underscores its broader crackdown on Big Tech, even amid criticism from U.S. officials. The DMA is designed to rein in the power of major platforms by enforcing stricter rules on data use and competition. Meta’s case illustrates how regulators are prepared to impose fines but also open to negotiated solutions. Analysts note that similar scrutiny is likely to continue across other platforms operating in the EU.

The approval may ease immediate financial risks for Meta but does not eliminate long‑term regulatory challenges. Ongoing monitoring means the company must demonstrate compliance in practice, not just in design. The case also highlights the growing importance of user choice in digital advertising models. Future disputes may hinge on how effectively companies balance personalization with privacy.