The European Commission says Facebook has changed the fine print in its terms of service to clearly explain that it makes money by selling access to users' data.
The social media giant modified its terms after discussions with the commission and consumer protection authorities.
European Union Consumer Commissioner Vera Jourova said Tuesday, "Now users will clearly understand that their data is used by the social network to sell targeted ads."
EU authorities stepped up scrutiny of Facebook's terms after the Cambridge Analytica data privacy scandal, in which the data on 87 million Facebook users was allegedly improperly harvested.
The changes are part of broader global efforts to rein in social media companies amid concerns about privacy breaches, harmful content and other online abuses.
