Meta Platforms Inc. has received a warning from EU regulators over its subscription model for ad-free services on Instagram and Facebook. The EU claims that Meta’s pay-or-consent policy breaches the Digital Markets Act (DMA) by forcing users to consent to the combination of their personal data without offering a less personalized version of the services. Margrethe Vestager, the EU’s antitrust chief, emphasized the need for citizens to control their data and choose a less personalized ad experience. Meta, which introduced separate ad-free versions of its platforms in November, stated that it complies with the DMA and looks forward to a constructive dialogue with the European Commission.

The DMA sets strict guidelines for major tech platforms, and violations can result in fines of up to 10% of global annual revenue, or 20% for repeated breaches. Under these rules, tech firms must seek user consent for combining personal data across services and offer access to less personalized versions if consent is refused. This warning to Meta follows a recent complaint against Apple for not allowing app developers to steer users to cheaper deals outside the App Store. The DMA prohibits tech giants like Apple, Google, Meta, Microsoft, and Amazon from favoring their own services over rivals and mandates fair data practices and app distribution options.