Meta, formerly known as Facebook, has agreed to modify its business model in the European Union, moving away from the controversial ‘pay or consent’ approach to data tracking. This shift comes as the company aims to resolve ongoing regulatory challenges within the EU and avoid additional fines, particularly in light of increasing tensions with US authorities over digital regulations.
Following discussions with the European Commission, Meta has introduced an alternative for users in the EU, offering a reduced-advertisement experience on Facebook and Instagram for those who opt out of personalized ads.
The adjustment is in response to an EU investigation into Meta’s previous practice of requiring users to either agree to data tracking or pay for an ad-free service. The Financial Times reported positive sentiments in October regarding the potential for a mutually satisfactory resolution.
Earlier in April, Meta faced a 200 million euro fine from the commission and was instructed to revise its business model. Failure to comply could have resulted in escalating daily penalties, potentially amounting to 5% of Meta’s global revenue.
Regulators will now evaluate Meta’s changes before determining the next steps in the investigation. While the case remains open, the European Commission views Meta’s adjustments as a positive development, signaling progress in addressing the concerns raised.
Source: Ars Technica