The European regulators have the authority to impose daily fines on Meta Platforms if its updated ad targeting model does not meet the requirements of European digital competition rules.
The European Commission continues to assess Meta’s revised “pay-or-consent” approach which enables Facebook and Instagram users to choose between paying for an ad-free experience or allowing tracking. The Commission issued a €200 million fine to Meta in April for violating the Digital Markets Act (DMA) and the company faces potential additional penalties starting June 27.
The regulators expressed skepticism about Meta’s limited modifications to its original model because they do not fulfill the DMA requirements for user choice.
The company issued a statement which criticized the Commission’s position while accusing them of moving the regulatory targets. The company declared its commitment to constructive engagement and its good faith implementation of changes.
Non-compliant firms under the DMA must pay daily fines which do not exceed 5% of their worldwide revenue. The EU uses this case as part of its initiative to control Big Tech companies while promoting competition between smaller digital businesses.
The Commission has not reached a final decision but indicated that Meta will face additional penalties if the company does not meet all compliance requirements within the next few days.
