Meta Faces Renewed EU Scrutiny Over Ad Consent Practices: Retail Keeps Neutral Ground

According to a Bloomberg report, the European Commission recently issued a letter to Meta, warning that the company’s current "pay or consent" subscription model still fails to meet the requirements of the Digital Markets Act.

Meta Platforms Inc. (META) is reportedly under the European Union’s (EU) regulatory microscope once again as the company faces renewed scrutiny over its approach to user data and advertising consent across Facebook and Instagram.

According to a Bloomberg report, the European Commission recently issued a letter to Meta, warning that the company’s current "pay or consent" subscription model still fails to meet the requirements of the Digital Markets Act (DMA).

Meta Platforms' stock inched lower by 0.4% on Tuesday afternoon, following the report

In April, regulators imposed a €200 million (roughly $232 million) penalty on Meta, arguing that its consent practices breached the DMA during the period from November 2023 to November 2024. 

Although Meta challenged the decision and entered negotiations for two months, EU authorities ultimately determined that the company’s subscription-based model remains out of step with the law.

Meta, however, argued in June that its current setup complies with the DMA and even surpasses the expectations set by EU rules.

Consequently, on July 11, Meta said it does not intend to implement further adjustments unless EU regulators alter their position.

According to the report, the EU has taken preliminary steps that could lead to formal warnings and recurring fines for the company if it fails to meet the expectations of Competition Commissioner Teresa Ribera and tech-policy lead Henna Virkkunen.

This new dispute deepens Meta’s ongoing troubles with European regulators. Over the past year, the company has incurred almost €1 billion in fines from the EU, including a €798 million penalty issued in late 2024 for allegedly linking Facebook Marketplace to its main social platform in a manner that undermined competition.

The clash with regulators unfolds amid heightened oversight of major tech firms across Europe, as other industry giants, such as Alphabet Inc. (GOOGL) and Apple Inc. (AAPL), also face probes into their adherence to the DMA.

On Stocktwits, retail sentiment toward Meta Platforms remained in ‘neutral’ territory with message volume levels shifting to ‘high’ from ‘normal’ in 24 hours.

Meta Platforms' stock has gained over 22% year-to-date and over 44% in the last 12 months.

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