Meta Warns of Declining User Experience in Europe After EU Ruling
Meta has cautioned that European users could soon face a “materially worse” experience on its platforms due to a recent regulatory decision from the European Commission.
The tech giant introduced a “consent or pay” model, allowing users to either pay for an ad-free experience or permit Meta to track and combine their data across Facebook and Instagram. However, the European Commission ruled this model violates the Digital Markets Act (DMA) and fined Meta €200 million.
As a result, Meta announced it would need to revise its model, warning that these changes may negatively impact user experience and significantly affect its business in Europe. These effects could begin as early as Q3 2025.
UK users are unaffected for now, but Meta is in talks with the Information Commissioner’s Office (ICO) about a similar model tailored for the UK.
A Meta spokesperson emphasized the economic importance of personalized ads, citing over £19.5 billion in UK business revenue annually, and reiterated the company's commitment to balancing regulatory compliance with service quality.
Analyst Eric Seufert suggested Meta may be aiming to sway public opinion against the new regulations by showing users how their experience may degrade under stricter rules.
The EU argues that Meta’s model doesn’t allow users to give genuine consent. The Commission is now reviewing another ad model by Meta that reportedly uses less personal data.
Meta has 60 days to comply or risk further penalties. Apple also faced a €500 million fine last week over its App Store practices.
Meanwhile, Meta’s quarterly earnings surpassed expectations, boosted by ad revenue and AI investments. CEO Mark Zuckerberg highlighted growth in Meta’s AI tools and smart glasses, noting the company is going “full throttle” on AI development.
Daily active users rose by 6%, easing concerns about slowing growth. However, the launch of Meta AI chatbot in Europe has drawn criticism from WhatsApp users who want an option to remove it.
The company is also navigating legal battles in the U.S., where the Federal Trade Commission accuses Meta of maintaining a monopoly through acquisitions of Instagram and WhatsApp.
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