EU Warns Meta of Daily Fines Over Pay-or-Consent Payment Model

The European Union is putting pressure on Meta, the company behind Facebook and Instagram, over its pay-or-consent model. This model gives you a choice: pay for an ad-free experience or let your data be tracked to see ads. Now, the EU warns Meta faces daily fines if it does not follow an antitrust order by June 27, 2025.

These fines could hit 5% of Meta’s average daily worldwide turnover, a huge amount for the tech giant. Just two months ago, Meta paid a €200 million ($234 million) fine for breaking the Digital Markets Act. This article explains the situation, what it means for Meta, and what happens next.

The pay-or-consent model started in November 2023, and Meta tweaked it in 2024. Still, EU regulators question if it meets the rules. Meta says it does more than required, but the fight continues.

Back in November 2023, Meta rolled out its pay-or-consent model to keep up with EU privacy rules. Users pick between paying a fee for no ads or letting Meta use their data for targeted ads. It stirred debate from the start.

In 2024, Meta made changes after EU feedback. Regulators still doubt it fully complies with laws. Meta insists its approach beats EU standards.

Why Does the EU Want to Fine Meta?

The EU thinks Meta’s model might break antitrust rules meant to keep markets fair. If Meta does not fix this by June 27, 2025, daily fines could start. This follows a €200 million fine for Digital Markets Act violations.

That earlier fine shows the EU is serious about big tech following rules. Meta faces pressure to prove its model is legal. The clock is ticking.

Key Facts Table

How Much Could Meta Pay in Fines?

Meta could face fines up to 5% of its average daily global revenue. With over $134 billion earned in 2023, that could mean daily fines in the millions. The exact amount depends on final EU decisions.

Starting June 27, 2025, these fines could stack up fast if Meta does not comply. It is a big risk for the company’s bottom line. Meta must act or face the cost.

Fines Breakdown

Here is a quick look at the numbers:

Previous Fine: €200 million ($234 million) for Digital Markets Act breach.
Meta could be hit with daily fines of up to 5% of its daily revenue.
2023 Revenue: Over $134 billion, hinting at huge daily penalties.

What Does Meta Say About This?

Meta stands firm, saying its model goes beyond EU law needs. It claims the European Commission is unfairly targeting its business, feeling like it’s being picked on.

This clash could change how Meta operates in Europe. It also tests how far the EU will push tech giants. Meta wants a fair shot to defend its plan.

Final Thoughts

This battle between Meta and the EU is heating up. With daily fines looming by June 27, 2025, Meta must decide its next move. The outcome will shape its future in Europe.

Users might see changes in how Meta handles data or charges for services. For now, we wait for full details. In this article, we do not give financial advice.