Meta Platforms may face daily fines from the European Union if recent changes to its pay-or-consent model do not meet antitrust requirements set out by the Digital Markets Act.
The warning from the European Commission came on Friday, two months after it fined Meta 200 million euros for breaching the rules.
Under the DMA, daily penalties for non-compliance can reach up to 5% of a company’s average daily global turnover. The Commission said Meta’s revised model, introduced in late 2024, makes only limited adjustments to how it handles user data for targeted advertising.
The model allows users to choose between a free, ad-supported version of Facebook and Instagram or a paid subscription without ads.
The Commission said it is still assessing whether the current model aligns with the legal requirements and noted that ongoing non-compliance could lead to further fines beginning June 27, 2025.
Meta has pushed back, arguing that the changes go beyond what EU rules require and accusing the Commission of unfair treatment. A company spokesperson said the business model of offering a free ad-supported service alongside a paid subscription is being unfairly restricted only for Meta.
In response, the Commission rejected claims of bias and said the rules apply to all major digital companies operating in the EU, regardless of origin or ownership. It added that enforcement is conducted fairly and in line with global standards.
The EU’s actions reflect a broader push to limit the market power of large digital platforms and encourage fair competition.
