Meta Offers EU Users Third Data-Sharing Option for Ads

The European Commission announced on Monday that Meta, the parent company of Facebook and Instagram, has committed to offering users in the European Union a new choice regarding personal data sharing for advertising purposes. This development aims to address ongoing concerns over the company's pay-or-consent model, which previously required users to either allow extensive data tracking for personalized ads or pay a subscription fee for ad-free access.

Under the revised approach, EU users will gain an effective third option starting in January 2025: they can consent to sharing less personal data in exchange for receiving ads that are less targeted and personalized. This alternative seeks to provide greater flexibility without mandating payment, aligning with the bloc's Digital Markets Act (DMA), which took effect in November 2023 and regulates large online platforms to ensure fair competition and user protections.

The commitment follows a series of regulatory actions against Meta. In April, the Commission fined the company 200 million euros for violating the DMA through its binary choice model, which authorities deemed coercive and insufficient for genuine user consent. The...