Meta Faces Fresh EU Threat of Daily Fines Over Pay-or-Consent Model

Key Takeaways

• Daily Fines Loom: Meta could face daily penalties starting June 27 if its revised pay-or-consent model is found non-compliant with the EU’s Digital Markets Act (DMA).
• Commission Still Unsure: The European Commission says it cannot yet confirm whether Meta’s latest changes meet DMA requirements.
• Previous €200M Fine: Meta was fined in April for failing to offer users a real choice between targeted ads and a privacy-friendly alternative.
• Meta Pushes Back: The company accuses the EU of discriminatory treatment, claiming its current model exceeds legal requirements.
• DMA Enforcement Escalates: The threat of daily fines underscores the EU’s growing pressure on Big Tech to reshape data practices under the DMA.

Deep Dive

Meta is back in the hot seat in Brussels, just months after it was slapped with a €200 million fine for breaching the EU’s Digital Markets Act (DMA). This time, the European Commission is warning that Meta could face daily penalty payments if its updated “pay-or-consent” model still fails to meet the bloc’s legal standards.

The warning was first reported by Reuters on Friday, citing a statement from the European Commission, which said it was still assessing whether Meta’s adjustments were enough to comply with its earlier order.

The potential fines, up to 5% of Meta’s average daily global turnover, could begin accruing as soon as June 27, 2025, unless the Commission is satisfied that Meta is now playing by the rules.

At issue is Meta’s longstanding “consent-or-pay” framework, rolled out across Facebook and Instagram in the EU in November 2023. The model offers users a binary choice: consent to tracking for targeted advertising or pay a monthly fee for an ad-free experience. In its April decision, the Commission found this approach failed to provide users with a true alternative, one that used less personal data but still delivered meaningful service, something the DMA explicitly requires.

Following that decision, Meta introduced changes to reduce reliance on personal data in ad targeting, but regulators remain unconvinced. In the statement shared with Reuters, a Commission spokesperson said it "cannot confirm at this stage" whether Meta’s revised model meets the legal threshold outlined in its April ruling.

Meta, for its part, is pushing back hard. In comments to Reuters, a spokesperson accused the Commission of discriminating against the company, arguing that “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.” The company added that it believes its revised model "goes well beyond" what EU rules require.

The Commission dismissed those claims of unfair treatment, noting that the DMA applies equally to all large digital platforms operating in the EU, regardless of their country of origin. “We have always enforced and will continue to enforce our laws fairly and without discrimination,” the spokesperson said.

This latest development builds on April’s enforcement action, when Meta and Apple were handed the first major fines under the DMA, marking a turning point in the EU’s push to rein in Big Tech. At the time, Meta was sanctioned for forcing users into an all-or-nothing data exchange, while Apple was fined €500 million for restricting developers from directing users to cheaper alternatives outside its App Store.

Meanwhile, Apple is also racing to avoid further penalties after it was fined in April. According to The Wall Street Journal, Apple has reworked its terms and conditions to give developers more freedom to direct users to external purchase options. The company is also introducing a new pricing model, including tiered service fees for developers who promote external payments through their apps. The Commission has not yet determined whether the changes are sufficient, but noted that it will consult with market participants before deciding on next steps. Apple, which disputes the EU’s interpretation, has until July 7 to formally appeal the April decision.

While Meta’s €200 million and Apple's €500 million fine addressed past violations, the threat of daily penalties signals that the Commission is not only watching their next moves, it’s prepared to act swiftly if it finds their updated models still fails to empower users with real data choices.

Whether this regulatory pressure results in meaningful changes or yet another prolonged dispute over interpretation remains to be seen. But the DMA era of enforcement is no longer hypothetical.

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