EU possibly to fine Meta USD22 million each day
(MENAFN) Meta, the parent company of Facebook and Instagram, is under fresh scrutiny from the European Union and may face fines of up to $22.5 million per day for failing to make further changes to its controversial “pay-or-consent” model, according to Reuters.
The system, introduced in the EU in November 2023, forces users to either pay a subscription to avoid data tracking or accept personalized ads in order to use Meta's platforms. Originally priced at €12.99 ($15+) per month, the model has been criticized by EU regulators for violating the bloc’s Digital Markets Act (DMA).
The DMA requires tech giants—designated as “gatekeepers”—to offer data-friendly alternatives that function equally well. Meta was already fined €200 million ($234 million) in April for non-compliance. Though the company later reduced its subscription fee and limited some data usage, the European Commission deemed these measures insufficient.
Last month, the Commission warned that Meta could face daily penalties of up to 5% of its global revenue unless it made additional changes. Based on Meta’s 2024 revenue of $164.5 billion, that could amount to $22.5 million per day.
Sources told Reuters that Meta has no plans to further revise the model unless compelled by changing circumstances. While Meta declined to comment, it has previously argued that its approach complies with the DMA and accused EU regulators of unfair targeting.
The clash highlights the growing tension between EU lawmakers and major tech firms as Brussels enforces stricter rules to ensure fair digital competition.
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