Meta Secures EU Approval for New Ad Choices After DMA Penalty

Meta has received the green light from the European Commission for a revised advertising strategy aimed at EU users. This development comes in the wake of a significant penalty imposed earlier this year under the Digital Markets Act (DMA), where the company faced a fine of €200 million for non-compliance. Meta’s new approach allows users within the EU to choose between consenting to a broader data sharing model for fully personalized ads or opting for less personalized advertising with reduced data sharing.

Starting in January 2026, users of Meta’s platforms, including Facebook and Instagram, will have the option to select their preferred advertising experience. This marks a pivotal moment for Meta, as it is the first time the company offers such a choice to its users. The European Commission emphasized that this initiative will be closely monitored, with ongoing feedback and evidence gathering from both Meta and relevant stakeholders to assess its effectiveness.

The introduction of less personalized ads on Meta’s platforms began in late 2024, shortly after the EU initiated an investigation into Meta, Apple, and Google regarding their advertising practices. Although this option involves using less personal data, it results in a higher frequency of advertisements displayed to the user. EU authorities are scrutinizing this measure to determine its compliance with the DMA, which mandates that companies must provide consumers with the option to choose services that rely less on personal data.

After facing a collective penalty of €700 million alongside Apple for violations of the DMA, Meta’s earlier advertising model, which required users to either pay or consent to personalized ads, was deemed non-compliant. The Commission’s investigation concluded that Meta’s approach restricted users’ ability to either freely consent or reject the use of their personal data in advertising.

Despite initial indications that Meta would not propose any new changes unless a shift in circumstances occurred, the recent approval from the EU has alleviated the company from further fines, which could have reached as much as 5% of its average daily worldwide turnover if found in continued violation of the DMA.

As the digital advertising landscape evolves, Meta’s commitment to offering more choice to its users signals a significant shift in the company’s approach to data privacy and user consent. With the EU’s approval, Meta is positioning itself to adapt to regulatory demands while striving to maintain its extensive user base in Europe.