In response to the EU's pressure on the Digital Markets Act (DMA), the EU questioned whether the provision of user-selected service usage methods was misleading.Decision to impose a €2 million fine, MetadisplayThe company will no longer make further adjustments to the use of its Facebook and Instagram services, even though it may face EU accusations of antitrust violations again in the coming weeks and may even face fines of up to 5% of its global revenue per day.
Prior to this, in response to the requirements of the EU Digital Markets Act, Meta adjusted its services such as Facebook in Europe to allow users to choose different options, including maintaining the existing usage model, that is, accepting the interference of personalized advertising exposure, but using it for free, or paying a monthly subscription fee to avoid all advertising content.
Faced with EU accusations of misleading users, Meta subsequently launched a new free version of its service in November 2024 and adjusted the price of paid subscriptions to €11, prompting the European Commission to reassess its impact. However, the Commission deemed the improvements too minor and still inconsistent with its commitment to "respecting users' right to free choice." Therefore, it issued a warning to Meta in June of this year, informing them that if no further changes were made, antitrust proceedings would be reinitiated as early as the end of July, with the potential for daily fines of up to 6% of Meta's global daily revenue.
However, sources claim that Meta's senior management, after reviewing the situation, believes it is now "fully compliant" and will not make further concessions unless there are significant changes in EU regulations or the external environment. Meta has also repeatedly emphasized publicly that it has already provided the European market with options that go beyond the requirements of the Digital Markets Act, and believes that the EU's criticism of its business model constitutes "selective enforcement."
For Meta, excessive compromise would jeopardize its advertising revenue structure, especially in mature markets like Europe, where personalized advertising remains one of its largest revenue sources. Market estimates suggest that if mandatory licensing were completely abolished, Meta's advertising revenue in Europe would decline by over 10%, placing significant pressure on its revenue growth.
The EU has yet to officially comment, but has clearly expressed its disapproval of Meta's business model, which uses fees to coerce users into agreeing to ad tracking. It remains unclear whether the EU will subsequently impose a higher fine or even require a comprehensive policy overhaul.
