Meta, the parent company of Facebook and Instagram, has no plans to make further changes to the 'pay or agree' advertising model despite the risk of daily fines and facing antitrust allegations from Europe.
This model allows users to choose to pay for no ads or accept personalized ads. Meta made some restrictive adjustments at the end of 2024 but still maintains its stance of not changing further unless there are significant legal shifts.
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Meta was fined 200 million EUR for violating the Digital Markets Act related to the new advertising model.
The company has no plan to change the 'pay or agree' advertising model despite warnings from the EU.
Meta and Apple are appealing a total of 700 million EUR in DMA fines.
Is Meta preparing to face new legal troubles?
Meta was fined 200 million EUR by the European Commission in April 2025 for violating the terms of the Digital Markets Act (DMA) related to data collection and advertising targeting.
The DMA came into effect in November 2023 to limit the power of major tech corporations through strict behavioral standards.
"Meta's advertising consent model has violated the fundamental standards of the DMA, but they continue to refuse to change beyond what has been implemented."
Maria Garcia, Head of Legal Affairs at the EU for Digital (2025)
Meta adjusted its model in November 2024, reducing the use of personal data for unpaid users, but the EU assesses that these adjustments are not sufficient. The company currently maintains its position of no further changes despite warnings and may face additional fines of up to 5% of global daily revenue.
How has Meta responded to fines and allegations from Europe?
Meta refutes the allegations and claims that its advertising model is not only legal but also exceeds the requirements of the DMA. They argue that the EU is taking an unfair approach towards their business.
The company has not provided new comments beyond previous statements and continues to assert that user rights are respected in this model.
What is the status of Meta and Apple's appeal regarding the DMA fines?
Meta and Apple have officially filed an appeal against total fines of 700 million EUR imposed by the EU for DMA violations. Apple was fined 500 million EUR for allegedly restricting users from seeking options outside the App Store.
"The demands that the European Commission is making exceed legal boundaries and could harm both developers and users."
Tim Cook, CEO of Apple (2025)
Apple has adjusted some App Store policies to avoid further fines and will continue to litigate in court. Meta also maintains its stance defending the 'pay or agree' model, claiming that the latest changes comply with DMA regulations.
Why is the standoff between Silicon Valley and Europe over digital regulation still ongoing?
The dispute between major tech corporations and EU regulators reflects the tension between technological innovation and the protection of privacy and fair competition in the digital market.
Meta argues that the European policy is overly strict, which could dampen innovation, while the EU emphasizes the importance of antitrust measures and protecting users from excessive data exploitation.
Frequently Asked Questions
What is the 'pay or agree' model? The model allows users to pay for an ad-free experience or agree to receive personalized ads based on their data. Why was Meta fined in relation to the Digital Markets Act? The European Commission believes that Meta's model violates regulations on the collection and use of personal data and does not comply with DMA standards. Is Meta changing its advertising model? Meta made some restrictive adjustments at the end of 2024 but has no plans for further changes unless legally required. What are Apple and Meta doing in response to the fines? Both companies have appealed the EU's penalty decisions and are preparing for a lengthy legal process. How does the Digital Markets Act affect major tech corporations? The DMA imposes strict regulations to control the power and behavior of large companies, aiming for a fairer digital market.
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