EU Meta “pay or consent” DMA decision

After Europe’s Digital Markets Act designated Meta a gatekeeper, the company could no longer treat “accept our tracking across Facebook, Instagram, and WhatsApp” as the only way to use the products.

Meta’s answer was a subscription: pay a monthly fee for an ad-light feed, or keep the free products and consent to combined advertising. Privacy groups called it a false choice—pay or be profiled.

The Commission’s DMA rules require consent that is freely given and specific. Staff argued a paywall is not equivalent to a less-personalised free service, especially when Meta also combines data across multiple core services.

In April 2025 Brussels issued a €200 million non-compliance decision and ordered Meta to offer a real alternative. The amount is modest next to Meta’s revenue, but the conduct order matters more than the cheque.

Meta says the subscription is a lawful way to fund products without ads and that users who refuse tracking still get access if they pay. It has signalled an appeal.

The case sits at the intersection of competition and data protection: DMA Article 5(2) is about combining data as a gatekeeper advantage, not only GDPR consent boxes.

Implementation will show up in EU login and settings screens. If Meta only tweaks wording, expect follow-on penalty payments.

It tests whether “pay or okay” can replace genuine consent under the DMA.

Other ad-funded gatekeepers watch whether they must ship a free, less-targeted mode.

Small advertisers may see less precise EU targeting if Meta cannot combine as freely.

The fine is a signal; the required product change is the real remedy.

US and UK privacy debates already cite this file when discussing default tracking.

Meta combined personal data across core platform services without a valid DMA consent path.

A paid ad-free tier is not a freely given alternative to consent.

The model preserves Meta’s advertising advantage while appearing to offer choice.

Gatekeepers must provide an equivalent service that does not depend on paying or on cross-service combination.

Meta says users who value privacy can pay and that advertising funds free products.

It argues the Commission is rewriting how consumer internet businesses work.

It maintains GDPR and DMA duties were already met through granular consent screens.

It warns that forced less-personalised modes will reduce publisher and SME ad performance.

EU Facebook and Instagram users may get a free, less-personalised ads option—not only a subscription.

The €200 million fine does not by itself change your feed tomorrow; the conduct order does.

Non-EU users keep Meta’s existing models unless the company globalises the change.

Treat leftover “probe only” headlines as outdated—the decision landed April 2025.