What Meta’s €200M Fine Tells Us About the Future of Consent in Digital Advertising
The European Commission’s recent decision to fine Meta €200 million for its “consent or pay” model sends a key message in the regulation of digital advertising in the EU, and possibly beyond.
Meta’s model, introduced in March 2024, gave users a binary choice: either pay a monthly fee to use Facebook and Instagram without ads, or consent to having their personal data combined across services to receive personalised ads. But according to the Commission, that choice wasn’t really a choice at all.
Under the Digital Markets Act (DMA), users must be given a genuine option to access services without handing over excessive personal data. The EU concluded Meta failed to provide this, effectively coercing users into consent by making the alternative payment less accessible or appealing.
Meta now has 60 days to comply or face further penalties. The company, in its earnings statement, warned that complying with the ruling could result in a “materially worse” experience for European users and a “significant impact” on its regional revenue.
The fine, alongside a larger €500 million penalty for Apple over its App Store practices, marks the first set of enforcement actions under the DMA. This enforcement suggests that tech giants will be held accountable not just for how they collect data, but for how transparently and fairly they present users with choices around that data.
From a business perspective, this ruling raises serious questions for platforms that rely on personalised advertising as a core revenue stream. If “consent or pay” models are out of step with EU rules, it begs the question of whether platforms can build sustainable, compliant models that don’t undermine user experience or profitability.
Meta, for its part, says it is exploring alternative models and is in active dialogue with regulators, not just in the EU, but in the UK as well, where the company has yet to roll out a similar subscription system. The UK’s Information Commissioner’s Office (ICO) has indicated it is closely monitoring developments.
For a long time, platforms have relied on collecting lots of personal data to deliver targeted ads. Now, that approach is being challenged. Tech companies may need to rethink how they advertise, with less focus on tracking and more focus on privacy. Regulators and businesses will also need to agree on what a fair and user-friendly alternative actually looks like.
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