Meta warned on Wednesday that European users could face a “significantly worse” experience following the European Commission’s key regulatory decision.

Meta recently introduced the “Agree or Paid” model, which allows users to choose to subscribe monthly or have Meta combine data collected on Facebook and Instagram.

Last week, the European Commission (EU executives) announced that it had decided that the model was not in compliance with the Digital Markets Act (DMA) and a fine of $171 million (£171 million).

"Based on feedback from DMA-related ECs, we hope we need to make some modifications to the model," Meta said in its quarterly earnings statement.

Meta said the changes are expected to "probably have a worse user experience for European users and have a significant impact on European business and revenue."

The company said the impacts could begin in the third quarter of this year and could take effect when appeals to the decision.

In the case of regulators, Meta could try to turn European users into "vocal cheerleaders" for their products, said Eric Seufert, an analyst with the mobile development memo.

"What they ultimately want to do is public opinion targeting this regulatory regime, which will reduce the product available to EU residents," Seufert told the BBC in a telephone interview after the announcement.

Meta (formerly Facebook) also includes social media networks, in addition to photo sharing app Instagram and messaging service WhatsApp.

The committee said Meta's consent or paid model does not allow users to freely agree to the use of their data.

The agency is currently evaluating another option launched last year, Meta, which the company said uses less personal data to display ads.

Meta is given 60 days to comply with the latest DMA decision, or may be subject to further fines.

Last week, Apple also received a fine of 500 million euros (£428 million).

Meta's announcement has released quarterly earnings that beat Wall Street expectations.

The results show that Meta continues to bring in considerable advertising revenue.

The company touted its AI tools on Wednesday.

"We have made great progress in AI glasses and Meta AI, and now we have nearly 1 billion active people every month," Mark Zuckerberg, founder and CEO of Meta, said in a statement.

“Our community continues to grow and our business is doing well,” he said.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the results showed that Meta had “full investment in AI”, noting

Britzman also noted that a 6% jump in daily active users.

"We have been worried that we may see a slowdown in new users this year, but it's a very strong start and signals for investors that Metta's app family is hard to replace for users," Britzman said.

In its earnings report, Meta calls the fine for a "active regulatory environment."

The company is currently defending its own trial in a case filed by the Federal Trade Commission, which claims META operates a social media monopoly.

The FTC, the top antitrust regulator in the United States, said Meta bought Instagram in 2012 and WhatsApp in 2014 to consolidate its monopoly.