Meta has agreed to give Facebook and Instagram users across the EU a clearer choice about how much of their personal data they want to share for targeted advertising. The decision comes after months of regulatory pressure and a hefty fine imposed on the tech giant under the bloc’s stringent Digital Markets Act (DMA). From January, EU users will be able to decide whether they want to share all of their personal data for fully personalized ads or opt for a low-data collection version with limited targeting.

Let’s take a look at the ongoing developments around the new EU regulation for meta in 5 points.

Point 1: Meta agrees to provide new ad-data choices to EU users

After lengthy discussions with the European Commission, Meta has formally agreed to launch a new consent system for advertising on Facebook and Instagram. The company will now give users in the EU two clear choices: consent to full data sharing for personalized ads or opt to share less personal data and receive a less targeted ad experience.

The EU has described it as an “effective alternative” and a meaningful improvement in transparency and user control on social media. The changes will take effect across the EU in January, covering all users of Meta’s two biggest platforms, Facebook and Instagram.

Point 2: A fine of €200 million is imposed under the agreement

Meta’s move comes directly after it was fined €200 million by the EU in April for violating the Digital Markets Act (DMA). Regulators found that Meta’s “pay-or-consent” system, whereby users either have to pay to avoid tracking or continue using the service for free, allowed extensive data collection. Regulators argued that this option did not provide a legally valid alternative with less personalized advertising.

The alleged breach spanned from November 2023 to November 2024, forcing Meta to revise its approach. With the new changes now approved, the company will now avoid daily fines which could have reached up to 5 percent of its global average daily turnover.

Point 3: Meta is offering such an option to EU users for the first time

Notably, this is the first time that Meta has provided Facebook and Instagram users with a direct, meaningful choice over how much of their personal data is used for ads. While Meta introduced limited options for less personalized advertising last year, the EU found these inadequate, noting that users still lacked an equivalent version of the platform that did not rely heavily on behavioral data. The newly approved model is now seen as a step towards aligning Meta’s platforms with DMA’s vision of fairness, transparency and user empowerment.

Point 4: Meta agrees, but why?

Meta’s agreement to provide users with clearer choices is the result of a months-long investigation into its advertising practices. Regulators and digital-rights groups had previously sharply criticized the Mark Zuckerberg-led company’s “pay for privacy” approach, arguing that it effectively forced users to accept tracking unless they paid. The Commission’s April investigation concluded that Meta’s system did not provide a true alternative or viable low-data version of its services.

In addition to the fine, Brussels also warned that Meta could face hefty daily penalties if it failed to comply. Although Meta had indicated it would not make substantial changes to its November proposal, the EU pushed for clearer wording, better design and stronger transparency to ensure users actually understand their options. The Commission will now closely monitor the implementation of the model and collect feedback from META and other stakeholders.

Point 5: Meta reiterates about personalized advertising

Meanwhile, reacting to the Commission’s decision, Meta also highlighted the economic value of personalized advertising in Europe. The company said targeted advertising plays a “crucial” role in the region’s digital economy, claiming that Meta’s ads contributed €213 billion to economic activity and supported 1.44 million jobs across the EU last year.

While the company has now agreed to the new framework, Meta said personalized ads remain important for small businesses and creators who rely on precise targeting to reach customers. The company suggested it would continue to refine its models while balancing regulatory demands with its advertising-supported business model.