Beginning January, people across the European Union will see new options when using Meta’s platforms. They can either allow full data sharing for personalised ads or limit the amount of information Meta collects, which will result in a less targeted advertising experience. European officials say this update finally gives users a “meaningful choice” about data-driven advertising—something they have demanded from major tech platforms for years.

A Response to a Major Penalty

Meta’s decision comes directly after the European Commission hit the company with a €200 million fine earlier this year. Regulators concluded that Meta’s previous “pay-or-consent” model—where users could either pay to avoid tracking or use the service for free while agreeing to widespread data sharing—did not offer a fair or legally valid alternative. The Commission ruled that the model failed to comply with the DMA’s requirement for less intrusive advertising options.

The violation was said to have occurred between November 2023 and November 2024. If Meta had continued resisting changes, it could have faced heavy daily penalties of up to 5 per cent of its average global daily turnover. The newly approved changes help the company avoid those fines and bring its practices closer to the standards demanded by European regulators.

A First for Meta in the EU

This development is notable because it is the first time Meta has given EU users such a direct and substantial choice about how their personal data fuels the ads they see. Though the company experimented with scaled-down advertising options last year, regulators found those measures insufficient. Users still lacked a genuine version of Facebook or Instagram that worked without extensive tracking.

The new model, according to EU authorities, moves Meta closer to the DMA’s principles of fairness, transparency, and user empowerment. It also sets an important precedent for how tech giants may need to adapt their ad practices in Europe going forward.

Why Meta Finally Agreed

Meta’s shift comes after months of pushback from regulators and digital rights groups who criticised its earlier approach. Critics argued that the “pay-for-privacy” model forced users into accepting tracking unless they were willing to pay for a subscription. In its April findings, the European Commission determined that this setup did not offer users a real choice or meaningful reduced-data option.

Although Meta initially signalled it wouldn’t significantly change its proposal, the EU insisted on clearer interface design, simpler language, and stronger transparency. Regulators will monitor the rollout closely and gather feedback from Meta and other stakeholders over the coming months.

Meta Defends the Value of Personalised Ads

Reacting to the Commission’s decision, Meta underscored that personalised advertising remains crucial to Europe’s digital ecosystem. The company highlighted that its targeted ads generated €213 billion in economic activity last year and supported 1.44 million jobs across the EU.

While Meta will now follow the new framework, it maintains that personalised ads are vital for small businesses and creators who depend on precise targeting. The company says it will continue refining its advertising systems while balancing regulatory expectations with its ad-supported business model.