Meta EU proposal to limit personal data for ads approved, avoids daily fines

New Delhi: Meta’s proposal to use less personal data for targeted advertising under its pay-or-consent model has received approval from European Union antitrust regulators, according to the news report. The model, set to be rolled out next month, means the company will not face the daily fines it could have incurred.

The review highlights Europe’s ongoing scrutiny of Big Tech, alongside a willingness to settle cases rather than impose substantial fines when possible, in order to avoid escalating tensions with the United States.

Meta had been in discussions with the European Commission following a 200 million euro ($233 million) fine in April for breaching the Digital Markets Act (DMA), which regulates the practices of large technology companies.

The breach involved Facebook and Instagram between November 2023 and November 2024, after which Meta adjusted its pay-or-consent model to use less personal data for targeted advertising.

The EU executive examined the proposed changes to ensure compliance with the DMA, with Meta facing potential daily fines of up to 5% of its average daily worldwide turnover if the model was still found to be in breach.

The adjustments focus on wording, design, and transparency, providing users with a clear reminder of their two options. Meta did not intend substantial modifications to its November proposal despite the potential for EU fines.

The Commission, which enforces EU competition rules, acknowledged the November proposal and said it will continue to monitor the new ad model and gather feedback.

“Meta will give users the effective choice between consenting to share all their data and seeing fully personalised advertising, and opting to share less personal data for an experience with more limited personalised advertising,” the Commission said in a statement.