EU Warns Meta of Potential Daily Fines Over Ad Consent Model

Meta faces escalating regulatory pressure in the EU as authorities threaten daily penalties over its advertising consent framework. The European Commission's latest warning follows a €200 million ($234 million) DMA violation fine imposed in March 2024, marking the second major enforcement action this year against the tech giant.

The contested model, introduced in November 2023, presented Facebook and Instagram users with a binary choice: pay for ad-free access or consent to tracking. While Meta has since tweaked its data collection practices, regulators maintain these adjustments fail to address Core DMA compliance issues regarding fair competition and user autonomy.

Commission officials characterize Meta's modifications as superficial, with spokesperson stating the changes 'cannot be confirmed as sufficient' to meet regulatory standards. The company risks accumulating penalties up to 5% of global daily revenue if unresolved by summer 2024.

Meta defends its approach as industry-standard practice, arguing the subscription model provides legitimate choice architecture. This standoff reflects broader tensions between platform operators and EU regulators implementing the Digital Markets Act's competition mandates.