Meta Platforms may face daily fines from the European Commission if its updated pay-or-consent model is deemed non-compliant with the EU’s Digital Markets Act (DMA), the Commission warned on Friday.
This development marks a further escalation in the EU’s enforcement of its legislation targeting dominant digital platforms, Reuters reported.
The warning comes two months after the Commission fined Meta €200 million for violations of the DMA, which aims to limit the market power of large online platforms and ensure fair competition. According to the Commission, Meta’s business model—introduced in November 2023 and revised in late 2024—does not fully meet the compliance standards outlined in the non-compliance decision issued in April.
Meta’s pay-or-consent model offers users of Facebook and Instagram a choice between consenting to data tracking in exchange for a free, ad-supported service, or paying a fee for an ad-free experience. While this approach purports to offer users greater control over their data, the Commission contends that Meta’s implementation may not align with the DMA’s requirement for genuine user consent and fair access.
“The Commission cannot confirm at this stage if these are sufficient to comply with the main parameters of compliance outlined in its non-compliance Decision,” said a spokesperson. “With this in mind, we will consider the next steps, including recalling that continuous non-compliance could entail the application of periodic penalty payments running as of 27 June 2025.“
Under the DMA, companies found to be in breach of their obligations may face daily fines of up to 5% of their average global daily turnover—potentially amounting to hundreds of millions of euros for a company of Meta’s size.
Meta has rejected the Commission’s assessment, accusing the regulator of unfair treatment and moving the regulatory “goalposts” during the past two months of discussions. “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,” said a company spokesperson. “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.“
The Commission has dismissed claims of discrimination, reiterating that the DMA is applied uniformly to all gatekeeper platforms, regardless of origin. “We have always enforced and will continue to enforce our laws fairly and without discrimination towards all companies operating in the EU, in full compliance with global rules,” the spokesperson added.
This dispute reflects broader tensions between EU regulators and major U.S.-based technology firms over compliance with the DMA. As enforcement intensifies, the outcome of this case is likely to set important precedents for how digital platforms must balance business models with user rights and regulatory expectations in the European market.
