The European Commission announced that Meta will give European Facebook and Instagram users the option to share less data and receive less personalized ads, as part of a settlement following a 200-million-euro fine for DMA violations.

Meta’s new ad model, rolled out in autumn 2024, is not yet deemed fully compliant with the DMA, and the Commission expects a revised version to be presented in January 2026 that addresses the issues more effectively.

The move comes after extensive dialogue with the Commission and aligns with the DMA’s requirement for a clear ad-choice option for EU users.

Privacy groups like noyb welcomed the step but warned that implementation details matter, while analysts foresee potential global ripple effects and heightened regulatory scrutiny elsewhere.

The Commission stressed that the case is not closed and will decide after the promised changes are implemented, viewing the update as positive progress toward compliance.

EU regulators see the model as a move toward DMA compliance and reduced gatekeeper power, though technical specifics were not disclosed.

The development could set a precedent for other platforms to adopt similar opt-in consent flows, potentially reshaping the digital advertising ecosystem toward privacy-centric models.

The plan involves rearchitecting ad algorithms and data pipelines to separate opt-out experiences, potentially accelerating privacy-preserving approaches like contextual advertising and privacy-friendly AI.

Meta projects a minimal immediate financial impact since Europe accounts for about 10% of global revenue, but acknowledges possible long-term growth effects from regulatory hurdles.

The Commission will assess uptake and impact of the new ad model by seeking feedback and evidence from Meta and other stakeholders after implementation.

Regulators view this as a significant step and will monitor implementation, gathering evidence on uptake and effects of the new model.

No major changes to free services are mandated beyond the new opt-out option; notifications will appear on login, with early beta tests showing higher opt-out rates among privacy-focused users.