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Investing.com -- According to a report from Reuters on Friday, Meta Platforms (NASDAQ:META) may face daily fines starting later this month if recent changes to its controversial pay-or-consent advertising model fail to meet European Union standards.
The warning, which Reuters said was issued on Friday by the European Commission, follows a €200 million ($234 million) fine levied against Meta two months ago for breaching the Digital Markets Act (DMA).
The legislation, which aims to rein in the power of Big Tech, found Meta’s approach to data consent in breach of EU rules, Reuters reported.
Meta’s model, introduced in November 2023, gives users of Facebook and Instagram a choice: allow tracking for targeted ads in exchange for free access or pay a monthly fee to avoid being tracked.
While Meta adjusted the model in 2024 to limit the use of personal data, regulators remain unconvinced that the changes go far enough.
“The Commission cannot confirm at this stage if these are sufficient to comply with the main parameters of compliance outlined in its non-compliance Decision,” a spokesperson told Reuters.
The Commission said it is considering next steps and reiterated that “continuous non-compliance could entail the application of periodic penalty payments running as of 27 June 2025,” Reuters noted.
Such penalties could be severe. According to Reuters, daily fines could reach up to 5% of Meta’s average daily global turnover.
Meanwhile, in a second report, Reuters reported that Meta has criticised EU antitrust regulators for moving the goalpost as the tech giant aims to comply with an order targeting its pay-or-consent business model.
The report states that Meta claimed the European Commission had discriminated against its business model. Additionally, the company believes it has engaged constructively in discussions and implemented extensive changes.