Meta, the parent company of Facebook and Instagram, has decided not to modify its 'pay-or-consent' advertising model despite increasing threats of fines from European regulators.
Meta's Position on Advertising Model
According to informed sources, Meta sees no need to change its model despite issues arising after the introduction of the Digital Markets Act (DMA) in November 2023. Last month, the European Commission expressed concerns over the company’s compliance with the new rules. Meta has made limited adjustments in the past but believes these measures are sufficient.
Fines and Legal Consequences
The European Commission has already fined Meta €200 million based on the 'pay-or-consent' model. Sources indicate that continued non-compliance could result in fines of up to 5% of the company’s daily global turnover, which could be enforced retroactively from June 27.
Appeals from Meta and Apple
This week, both Meta and Apple officially filed appeals against previous EU decisions that imposed a total of €700 million in fines. Meta defends its 'pay-or-consent' model, claiming it meets DMA requirements, while Apple contends that the Commission's actions exceed legal boundaries.
Meta's stance amidst the pressure from European regulators highlights the growing tension between major tech companies and European authorities regarding data protection and advertising management.
