European Commission Warns Meta That ‘Consent or Pay' Model Remains Noncompliant

Core Viewpoint - Meta is engaged in an ongoing conflict with the European Commission regarding its "consent or pay" model, which allows users to opt for ad-free services for a fee, and this model is under scrutiny for compliance with the EU's Digital Markets Act [1][2]. Group 1: Regulatory Actions - The European Commission has indicated that Meta's "consent or pay" model requires further modifications to comply with antitrust provisions of the Digital Markets Act, following a €200 million fine imposed on the company in April [2][4]. - The Commission's latest communication to Meta suggests the possibility of a formal warning and additional fines if compliance is not achieved [2][6]. - Meta has made "limited changes" since the initial fine, and the Commission's letter details the outstanding issues that need to be addressed [3][4]. Group 2: Company Response - A Meta spokesperson claimed that the options provided to EU users exceed the requirements set forth by the Digital Markets Act [3]. - Meta's Chief Global Affairs Officer stated that the Commission's demands effectively impose a multibillion-dollar tariff on the company while requiring it to offer a less competitive service [6]. - Reports suggest that Meta is "very unlikely" to make further adjustments to its "consent or pay" policy, indicating potential for significant new fines from the European Commission [6][7]. Group 3: Potential Consequences - If Meta is found in continued violation of the regulations, it could face escalating fines of up to 5% of its daily turnover [7].