Facebook and Instagram users in Europe will shortly receive a fresh choice.
After months of pushing with Brussels, Meta agreed to modify her controversial subscription model. Next to the paid version without ads and free version with full tracking, an intermediate option will appear – displaying little personalized ads.
This decision is simply a direct consequence of an investigation by the European Commission under the Digital Markets Act (DMA). Brussels challenged the so-far Pay or Consent model, arguing that forcing users to choose between a fee and full privacy is unfair.
Ad-light version as a compromise
As announced by the Commission, Meta will offer users an alternate version of Facebook and Instagram services. It will be free of charge, but alternatively the ads displayed will be based on a much smaller amount of individual data (so-called ad-light option). It's an effort to find a golden means that will satisfy regulators without cutting off the giant from advertising revenue.
The stakes were high. In April, the Commission had already imposed a preliminary punishment of EUR 200 million on Meta while threatening to charge regular financial penalties, which could scope up to 5% of the company's average regular income.
Political background of the dispute
Meta's movement is an effort to de-escalate tension on the USA-EU line. Let us remind you that only last week The Commission has imposed a punishment of EUR 120 million on platform X (formerly Twitter) owned by Elon Musk. This sparked a sharp reaction from American politicians, including Secretary of State Marco Rubio and US Ambassador to the EU Andrew Puzder, who accused the Union of "over-reach regulators" (overregulation) and attacking American companies.
Meta chose a different way than Musk – alternatively of going to war, she prefers to adjust the business model. The European Commission commented on Meta's offer as a "very good step forward" but noted that the case is not yet officially closed and that changes will be monitored.
The Union hits the Musk Empire. X with the first always punishment under DSA
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