Meta Platforms is accusing European Union regulators of shifting goalposts and unfairly targeting its business model under the Digital Markets Act (DMA), in what is fast becoming a high-stakes showdown over data privacy, digital gatekeeping, and advertising power.
In a statement on Friday, the U.S. tech giant said the European Commission was enforcing the DMA unevenly, discriminating against Meta’s “pay-or-consent” model, which offers users a choice between using Facebook and Instagram for free with personalized ads, or paying to opt out of ad tracking. Meta said it had gone “well beyond” the DMA’s compliance requirements and that it had made extensive changes in good faith after ongoing consultations.
“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,” a Meta spokesperson said.
But EU regulators disagree. On June 25, the European Commission said Meta’s model might not provide a “real alternative” to users and warned the company to expect enforcement action unless it makes substantive changes.
Ongoing Clampdown: Fines, Probes, and a Shrinking Window for Compliance
The Commission’s scrutiny of Meta is not new—but it has intensified rapidly under the landmark Digital Markets Act, which officially came into force in March 2024 to rein in the dominance of “gatekeeper” tech companies.
In April 2025, the EU fined Meta €200 million over its existing pay-or-consent model, saying it violated the DMA’s requirement for user consent to be freely given, specific, informed, and unambiguous. Regulators argued that by tying access to the platform to either full tracking or payment, Meta was not offering a real alternative, especially to economically disadvantaged users.
That fine came alongside a broader €700 million joint enforcement against both Meta and Apple, making it the first major crackdown under the DMA. The ruling followed investigations launched in March 2024, which also focused on Meta’s handling of data across services like Facebook Marketplace, where the company was accused of self-preferencing and unfair bundling.
Back in November 2024, Meta was fined €798 million over anticompetitive conduct related to Facebook Marketplace. The European Commission found that Meta was using advertising data from its competitors to favor its own services and integrating Marketplace into Facebook in ways that distorted competition.
Meta’s Counterargument: Regulatory Double Standards?
In its latest pushback, Meta accuses the EU of selectively applying its rules and treating it differently from other companies that also offer users ad-supported or subscription-based models.
“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 said, implying that it is being held to a higher standard.
Meta also argues that regulators are effectively rewriting compliance requirements after the fact. According to internal sources cited by Reuters and AP, Meta is frustrated that its recent revisions to the consent model—offering new personalization settings, simplified interfaces, and regional pricing—have not been deemed sufficient by EU watchdogs.
The Commission, on the other hand, is adamant that Meta must offer a non-tracked version of its services without requiring users to pay, in order to meet DMA’s “freely given consent” requirement.
The Business Stakes: Revenue and Reach at Risk
Meta’s business in Europe is on the line. Advertising forms the core of its revenue model, and a significant percentage of that comes from targeting users based on detailed behavioral data. Any rollback in that capability—whether through opt-outs or subscription uptake—threatens to hit its bottom line.
More importantly, if the EU deems Meta non-compliant, the Commission can impose daily fines of up to 5% of global daily turnover. With Meta’s 2024 global revenue exceeding $130 billion, such penalties could exceed $17 million per day. This threat becomes active by June 27, 2025, if Meta’s model is still found in breach.
The showdown is not just about Meta. The DMA represents the EU’s most ambitious effort to curb the power of dominant digital platforms and restore competition across tech markets. Meta, Apple, Amazon, Google, and Microsoft are all designated as “gatekeepers,” and their platforms—from app stores to messaging services—are now subject to stricter rules.
The EU is signaling it will not tolerate superficial compliance by making an example of Meta early on. Regulators are demanding not just checkbox conformity but a genuine reshaping of business models that historically thrived on opaque data monetization.
The EU’s latest moves also build on years of scrutiny. In 2022, Meta was fined €390 million by Ireland’s Data Protection Commission under GDPR for forcing users into data collection via its terms of service. That same year, the company’s ad targeting model was challenged by consumer groups across several EU member states.
What Happens Next?
Meta is expected to formally appeal the Commission’s findings and possibly further revise its pay-or-consent framework. But it may face additional probes related to the interoperability of Messenger and Instagram with rival messaging apps, another DMA requirement that remains under review.
The outcome of this battle will likely set the tone for how aggressively Brussels enforces the DMA—and whether Big Tech’s long-standing monetization models can survive in a future where user rights and privacy are increasingly protected by law.