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Meta's new subscription model, introduced in 2023 for Instagram and Facebook, has come under fire from the European Commission (EC). Known as the "Pay or Permit" model, users are given the choice to either pay a monthly fee for an ad-free experience or consent to the processing of their personal data for targeted advertising.
The EC has raised concerns that this model may breach EU antitrust and consumer data privacy rules. In April 2025, Meta was fined €200 million (~$232.6 million) for failing to meet obligations with this model. More recently, the EC has threatened additional daily fines if changes are not made.
The controversy centres around whether users can freely give consent to data processing when faced with a "pay or consent" choice. Critics argue that this approach undermines the validity of consent required under EU data protection laws such as GDPR, as users lack a genuine choice if they cannot or do not wish to pay.
The EC has highlighted that this model may conflict with rules mandating transparent, fair consent and prohibiting coercive practices. Meta, however, has reportedly declined to make further changes to the model, maintaining its current terms of service for Instagram and Facebook, even risking heavier regulatory penalties in the EU.
The dispute over the pay-or-permit model highlights tensions between large digital platforms and EU regulators aiming to safeguard privacy and competition online. It also illustrates challenges facing digital giants in adapting business models reliant on targeted advertising to strict EU data protection and antitrust frameworks.
While most sources specifically reference the Digital Markets Act regarding the pay-or-consent model, the Digital Services Act (DAS) sets broader obligations on platforms to manage content and systemic risks. Meta’s approach to user consent and monetization potentially engages DAS provisions on transparency and fairness in digital services, amplifying regulatory scrutiny.
In summary, Meta’s pay-or-permit model, which allows users to choose between paying for services or accepting personalized ads based on their personal data, has come under scrutiny from the European Commission. The EC has levied heavy fines and demands compliance adjustments, which Meta has resisted, leading to ongoing legal and regulatory challenges related to the EU’s digital services legal framework.
[1] European Commission (2024). Press release: European Commission reaffirms non-compliance of Meta's pay-or-consent model under the Digital Markets Act. [2] European Commission (2025). Press release: European Commission fines Meta €200 million for breaching obligations under the Digital Markets Act. [3] Reuters (2025). Meta defies EU antitrust order, refuses to change controversial data-sharing model. [4] The Guardian (2024). Meta's pay-or-consent model under fire from EU regulators over privacy concerns.
What is Meta's response to concerns about its finance-driven technology, specifically the pay-or-permit model? Meta has reportedly declined to make further changes to the model, maintaining its current terms of service for Instagram and Facebook, even risking heavier regulatory penalties in the EU.
In the light of ongoing regulatory challenges, what questions may arise regarding the balance between technology companies' finance models and EU data privacy and competition rules? Critics argue that Meta's approach to user consent and monetization potentially engages DAS provisions on transparency and fairness in digital services, amplifying regulatory scrutiny.
