Meta has agreed to make changes to its “pay or consent” business model in the EU, seeking to agree to a deal that avoids further regulatory fines at a time when the bloc’s digital rule book is drawing anger from US authorities.
On Tuesday, the European Commission announced that the social media giant had offered users an alternative choice of Facebook and Instagram services that would show them fewer personalized advertisements.
The offer follows an EU investigation into Meta’s policy of requiring users either to consent to data tracking or pay for an ad-free service. The Financial Times reported on optimism that an agreement could be reached between the parties in October.
The commission in April had already fined Meta 200 million euros following its initial findings, ordering the group to change its model. If the company failed to comply, it could have faced daily penalties. These can escalate over time and reach up to 5 percent of average daily worldwide revenue.
Regulators will now assess those changes before potentially closing the probe. “The case is not closed, but it is a very good step forward and we will now monitor it from here,” the commission said.