Meta has warned that users in Europe may soon face a “materially worse” experience on its platforms after the European Commission fined the tech giant €200m for breaching the Digital Markets Act (DMA). The decision targets Meta’s “consent or pay” model, which forces users to either accept data tracking or pay a subscription fee for an ad-free experience on Facebook and Instagram.
In its quarterly earnings report released Wednesday, Meta stated that modifications required to comply with the DMA could “result in a materially worse user experience for European users and a significant impact” on its regional business and revenue. These changes could begin as early as the third quarter of 2025.
Meta said it is still reviewing how to implement the Commission’s directive but expects ongoing business disruption during its appeal process. The EC argued that Meta’s model does not give users meaningful choice over how their personal data is used, prompting the hefty fine and a 60-day deadline for compliance.
Industry analyst Eric Seufert suggested Meta may be attempting to rally European users against what it sees as harmful regulation. “What they ultimately want to do is turn public opinion against this regulatory regime which will demonstrably degrade the product offerings that are available to EU residents,” he told the BBC.
Meta, which owns Facebook, Instagram, and WhatsApp, is also facing increased scrutiny in the US. The Federal Trade Commission (FTC) is pursuing an antitrust case, alleging that Meta operates a social media monopoly through its acquisitions of Instagram and WhatsApp.
Despite regulatory pressures, Meta reported quarterly earnings that exceeded Wall Street expectations, buoyed by strong advertising revenue and continued growth in daily active users. CEO Mark Zuckerberg touted progress on the company’s AI initiatives, noting that Meta AI tools and AI-powered smart glasses are attracting nearly 1 billion monthly users.
The fine against Meta follows another recent €500m penalty imposed on Apple over App Store practices, signaling a broader EU crackdown on Big Tech. Meta, however, has vowed to comply with the regulations while defending its business model and data practices.
Chioma Kalu
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