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Meta Warns Revenue Model Changes Could Harm User Experience

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• Technology •

Meta faces a €200M fine from the EC over its ad-free subscription model, which it claims could harm user experience if altered. The company may adjust its approach while appealing the decision.

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Meta has criticized the European Commission following a fine for violating the Digital Markets Act (DMA). The Commission argues that Meta's ad-free subscription model is too restrictive. However, Meta CFO Susan Li warns that adjusting the revenue model could severely degrade user experience and impact European revenue.

Meta recently introduced a model allowing users to choose between a monthly subscription or data sharing for personalized ads. The EC fined Meta €200 million, stating the model fails DMA compliance. Meta may adjust its system pending appeal but warns of negative effects by Q3 2024.

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