Meta Warns of ‘Worse’ User Experience in Europe After EU Ruling on Data Consent Model

Meta has cautioned that users across Europe could soon face a “materially worse” experience on Facebook and Instagram following a recent regulatory crackdown by the European Commission.

The warning, issued in the company’s quarterly earnings statement on Wednesday, follows the EU’s decision to fine Meta €200 million for its controversial “consent or pay” model, which asks users to either accept data tracking or pay a subscription fee to use the platforms ad-free.

The European Commission found that this model violates the Digital Markets Act (DMA), arguing that it does not provide users with a truly free and informed choice on how their personal data is handled. Meta now has 60 days to comply or face further sanctions.

In response, the tech giant said it expects to make changes that could degrade the user experience in Europe and significantly impact its regional business performance. Those changes could roll out as early as the third quarter of 2025, even as Meta plans to challenge the ruling in court.

“These adjustments could result in a materially worse user experience for European users and a significant impact to our European revenue,” the company noted.

The situation does not affect the UK, where Meta’s ad-free subscription option is not yet in use. However, discussions are ongoing with the UK’s Information Commissioner’s Office about the potential rollout of a similar system.

Industry analyst Eric Seufert suggested Meta’s public warnings could be a strategic attempt to sway public sentiment. “What they ultimately want to do is turn public opinion against this regulatory regime which will demonstrably degrade the product offerings that are available to EU residents,” he said.

Meanwhile, Meta continues to show strong financial performance. The company’s latest earnings beat Wall Street expectations, bolstered by a 6% increase in daily active users and robust ad revenues. CEO Mark Zuckerberg highlighted continued investment in artificial intelligence, noting that Meta AI and its smart glasses projects are gaining traction, with the AI assistant alone now approaching 1 billion monthly active users.

The European Commission is also reviewing a revised ad model Meta introduced last year that reportedly uses less personal data. The outcome of that assessment could further shape Meta’s operations in Europe.

The company’s regulatory woes extend beyond the EU. In the United States, Meta is facing a high-stakes antitrust lawsuit from the Federal Trade Commission, which accuses it of monopolising the social media space through its acquisitions of Instagram and WhatsApp.

Despite these challenges, analysts say Meta’s core products remain highly entrenched. “This was a very strong start and a signal to investors that Meta’s family of apps has a grip on users that’s hard to displace,” said Hargreaves Lansdown senior equity analyst Matt Britzman.