Meta, the parent company of Facebook and Instagram, has achieved a significant milestone in its regulatory battle with the European Union. The European Commission, on December 8, 2025, approved a revised advertising model by Meta, promising to use less personal data for ad targeting in the EU. The approval saves Meta from steep daily fines it had been facing under the EU’s Digital Markets Act, marking a temporary win for the social media giant and its users.
What Changed: The New Advertising Model
The revised Meta model presents a clear choice for users in the EU. Instead of being forced to either pay to avoid ads or allow full-scale data tracking to serve personalized ads, users can now choose an ad experience that uses reduced data without paying. This relies on minimal personal information, like basic demographics and contextual data, not long-term user behavior or extensive tracking history.
The changes will take effect starting January 2026, giving European users more control over their data while keeping free services intact. For users on Facebook or Instagram, this means a choice between:
- Full data sharing for highly personalized ads.
- Limited data sharing for contextual ads, which are less targeted but still relevant.
Meta refers to this as the “Less Personalized Ads,” or LPA model, which the company admits uses “almost 90% less data” than their traditional targeting system.
Why the EU Intervened
The European Commission has been vigorously enforcing the DMA, which mandates tech “gatekeepers” like Meta to offer choices to users when it comes to services that require personal data. An earlier “pay-or-consent” model introduced by Meta in 2023 did not comply with the new rules. That model forced users to either accept broad data tracking for personalized ads or pay a fee for an ad-free experience, thus penalizing those who wanted privacy.
Thus, Meta had to face of them being a €200 million fine covering 2023-2024—with continued non-compliance threatened with daily fines of up to 5% of its global turnover. In any case, approval of the revised model by the EU already demonstrates that regulators are ready to compromise as long as users are genuinely free to choose an alternative with less data.
Implications for Users and Advertisers
For EU users, this means a positive step in terms of privacy protection. They are free to limit the use of their personal data without being channeled into subscriptions or paid fees. This fits with growing European demands for tougher data privacy and control over online experiences.
To advertisers, though, the shift could also diminish some of the effectiveness of ad campaigns. Less targeted ads do not reach the most relevant audience segments, potentially lowering engagement and ROI. Businesses that rely on the granular targeting offered by Meta will have to rethink their marketing strategies in light of this model change.
The move, however, may hit ad revenue for Meta, even though it will avoid daily fines and other regulatory penalties. The company itself admits that the LPA model reduces targeting precision significantly. At the same time, offering a compliant and user-friendly alternative will help Meta retain its market share in Europe amidst increasing strictness on privacy regulation.
What Comes Next
The Commission will continue to monitor Meta to make sure that the new model complies with the DMA. Approval is given now, yet it doesn’t guarantee compliance in the future; regulators may revisit the platform if the implementation falls short or if users find the reduced-data option wanting.
It also sets a precedent for other Big Tech companies in the EU. Other firms, including Google, TikTok, and Snapchat, may face similar pressures to provide less-data alternatives for personalized ads in order to avoid regulatory penalties.
Final Thoughts
The EU-approved model of Meta balances users’ privacy, regulatory compliance, and revenue sustainability. It’s a win for users on matters of privacy and choice but means advertisers and Meta face some challenges in maintaining ad effectiveness and revenue streams. With data privacy regulations tightening around the world, the development presages a new era in which technology giants will have to think hard about how they collect and use personal information while offering useful services.
Providing real choices, Meta takes a further step toward meeting European standards and saving itself from significant fines, but it remains to be seen what the long-term implications will be for the ad-driven business model.
