European regulators have secured a commitment from Meta to overhaul its ads policy in the European Union following a 200 million euro fine for breaching the bloc’s digital competition rules. The move comes after regulators concluded that Meta’s ad targeting model did not comply with requirements under the Digital Markets Act and warned that stronger enforcement would follow unless changes were made. Under the revised model EU users of Facebook and Instagram will be offered a clear choice starting in January 2026. They will either consent to share their personal data in return for fully personalised advertising or limit data sharing and receive a reduced targeting experience based on less intrusive information. Officials say the change is intended to provide a meaningful choice rather than the limited options previously available. The new arrangements are intended to replace the earlier consent or pay system under which users were required to accept tracking or pay for an ad free subscription. Regulators found that the model put pressure on users to give up their data and failed to offer an adequate alternative that respected the spirit of the bloc’s consent requirements. The 200 million euro penalty issued earlier in the year reflected what the Commission described as a significant breach of competition and data protection expectations. Meta’s commitment follows months of pressure from the European Commission. Earlier warnings had indicated the company could face daily fines if its ad practices continued to fall short of Digital Markets Act obligations. By introducing a model with two distinct data sharing options Meta aims to show it can comply with new rules that demand transparency and stronger user control. The approved changes will not end the use of personalised advertising in the European Union. Instead they are designed to reduce the volume of personal data collected when users opt for a lighter data mode. Under this model advertising will rely more on contextual signals such as general site activity and less on behavioural profiling. Regulators say such a shift will reduce data exposure while maintaining a viable ad funded service. Officials in Brussels will continue to monitor the impact of the revised policy once it takes effect. The Commission plans to collect feedback from consumer groups, advertisers and Meta itself to evaluate user behaviour under the new system and to assess how far the changes meet regulatory expectations. The review will help determine whether additional enforcement or further policy adjustments are necessary. The development is seen as a significant milestone for privacy advocates who have argued for years that large platforms should offer meaningful options regarding tracked advertising. It also marks one of the clearest tests yet of how the Digital Markets Act can influence the policies of major technology companies. Meta avoids further immediate penalties by agreeing to the reform but remains under scrutiny to demonstrate compliance in practice. The company’s decision comes amid broader concern about digital advertising models. Critics had argued that the previous subscription requirement for ad free use amounted to penalising users for protecting their privacy. Regulators agreed that the structure did not provide a genuine or fair choice and therefore fell outside compliance standards set for gatekeeper platforms. The changes will apply across all member states of the European Union and will affect millions of users. In early 2026 individuals will be prompted to select their preferred data sharing level through updates to the Facebook and Instagram apps. Meta has said it is considering offering similar options globally though details remain uncertain. Advertisers may experience a shift in targeting precision if a significant number of users select the lower data mode. Some analysts expect a transition toward broader contextual advertising which could in turn influence pricing and marketing strategies across the sector. Industry watchers note that these changes may accelerate a longer term trend away from heavy reliance on personal profiling. Meta’s policy shift is likely to influence digital regulation beyond Europe. The decision highlights how the European Union’s new competition and data protection regime can shape the practices of companies operating at global scale. For consumers the reforms promise greater control over personal data and signal a broader move toward strengthening privacy in the digital economy....