diff --git a/src/sinks/loki/config.rs b/src/sinks/loki/config.rs
index f72c68c964007..74ce254793ece 100644
--- a/src/sinks/loki/config.rs
+++ b/src/sinks/loki/config.rs
@@ -9,42 +9,8 @@ use crate::{
     sinks::{prelude::*, util::UriSerde},
 };
 
-/// Loki-specific compression.
-#[configurable_component]
-#[derive(Debug, Copy, Clone, Eq, PartialEq)]
-pub enum ExtendedCompression {
-    /// Snappy compression.
-    ///
-    /// This implies sending push requests as Protocol Buffers.
-    #[serde(rename = "snappy")]
-    Snappy,
-}
-
-/// Compression configuration.
-#[configurable_component]
-#[derive(Debug, Copy, Clone, Eq, PartialEq)]
-#[serde(untagged)]
-pub enum CompressionConfigAdapter {
-    /// Basic compression.
-    Original(Compression),
-
-    /// Loki-specific compression.
-    Extended(ExtendedCompression),
-}
-
-impl CompressionConfigAdapter {
-    pub const fn content_encoding(self) -> Option<&'static str> {
-        match self {
-            CompressionConfigAdapter::Original(compression) => compression.content_encoding(),
-            CompressionConfigAdapter::Extended(_) => Some("snappy"),
-        }
-    }
-}
-
-impl Default for CompressionConfigAdapter {
-    fn default() -> Self {
-        CompressionConfigAdapter::Extended(ExtendedCompression::Snappy)
-    }
+const fn default_compression() -> Compression {
+    Compression::Snappy
 }
 
 fn default_loki_path() -> String {
@@ -106,9 +72,10 @@ pub struct LokiConfig {
     #[serde(default = "crate::serde::default_true")]
     pub remove_timestamp: bool,
 
-    #[configurable(derived)]
-    #[serde(default)]
-    pub compression: CompressionConfigAdapter,
+    /// Compression configuration.
+    /// Snappy compression implies sending push requests as Protocol Buffers.
+    #[serde(default = "default_compression")]
+    pub compression: Compression,
 
     #[configurable(derived)]
     #[serde(default)]
diff --git a/src/sinks/loki/service.rs b/src/sinks/loki/service.rs
index edcc762042fba..2a4c33280732f 100644
--- a/src/sinks/loki/service.rs
+++ b/src/sinks/loki/service.rs
@@ -5,7 +5,6 @@ use http::StatusCode;
 use snafu::Snafu;
 use tracing::Instrument;
 
-use crate::sinks::loki::config::{CompressionConfigAdapter, ExtendedCompression};
 use crate::{
     http::{Auth, HttpClient},
     sinks::{prelude::*, util::UriSerde},
@@ -60,7 +59,7 @@ impl DriverResponse for LokiResponse {
 
 #[derive(Clone)]
 pub struct LokiRequest {
-    pub compression: CompressionConfigAdapter,
+    pub compression: Compression,
     pub finalizers: EventFinalizers,
     pub payload: Bytes,
     pub tenant_id: Option<String>,
@@ -113,10 +112,8 @@ impl Service<LokiRequest> for LokiService {
 
     fn call(&mut self, request: LokiRequest) -> Self::Future {
         let content_type = match request.compression {
-            CompressionConfigAdapter::Original(_) => "application/json",
-            CompressionConfigAdapter::Extended(ExtendedCompression::Snappy) => {
-                "application/x-protobuf"
-            }
+            Compression::Snappy => "application/x-protobuf",
+            _ => "application/json",
         };
         let mut req = http::Request::post(&self.endpoint.uri).header("Content-Type", content_type);
 
diff --git a/src/sinks/loki/sink.rs b/src/sinks/loki/sink.rs
index a9c1a1cc5b092..ac5fe5fe98baf 100644
--- a/src/sinks/loki/sink.rs
+++ b/src/sinks/loki/sink.rs
@@ -12,7 +12,6 @@ use super::{
     event::{LokiBatchEncoder, LokiEvent, LokiRecord, PartitionKey},
     service::{LokiRequest, LokiRetryLogic, LokiService},
 };
-use crate::sinks::loki::config::{CompressionConfigAdapter, ExtendedCompression};
 use crate::sinks::loki::event::LokiBatchEncoding;
 use crate::{
     http::{get_http_scheme_from_uri, HttpClient},
@@ -65,7 +64,7 @@ impl Partitioner for RecordPartitioner {
 
 #[derive(Clone)]
 pub struct LokiRequestBuilder {
-    compression: CompressionConfigAdapter,
+    compression: Compression,
     encoder: LokiBatchEncoder,
 }
 
@@ -92,9 +91,12 @@ impl RequestBuilder<(PartitionKey, Vec<LokiRecord>)> for LokiRequestBuilder {
     type Error = RequestBuildError;
 
     fn compression(&self) -> Compression {
-        match self.compression {
-            CompressionConfigAdapter::Original(compression) => compression,
-            CompressionConfigAdapter::Extended(_) => Compression::None,
+        if self.compression == Compression::Snappy {
+            // Snappy compression is applied after converting the batch to protobuf so
+            // we need to handle this separately.
+            Compression::None
+        } else {
+            self.compression
         }
     }
 
@@ -415,10 +417,8 @@ impl LokiSink {
         let serializer = config.encoding.build()?;
         let encoder = Encoder::<()>::new(serializer);
         let batch_encoder = match config.compression {
-            CompressionConfigAdapter::Original(_) => LokiBatchEncoder(LokiBatchEncoding::Json),
-            CompressionConfigAdapter::Extended(ExtendedCompression::Snappy) => {
-                LokiBatchEncoder(LokiBatchEncoding::Protobuf)
-            }
+            Compression::Snappy => LokiBatchEncoder(LokiBatchEncoding::Protobuf),
+            _ => LokiBatchEncoder(LokiBatchEncoding::Json),
         };
 
         Ok(Self {
diff --git a/website/cue/reference/components/sinks/base/loki.cue b/website/cue/reference/components/sinks/base/loki.cue
index c44bc390a0c1a..6b381045937ed 100644
--- a/website/cue/reference/components/sinks/base/loki.cue
+++ b/website/cue/reference/components/sinks/base/loki.cue
@@ -110,8 +110,11 @@ base: components: sinks: loki: configuration: {
 		}
 	}
 	compression: {
-		description: "Compression configuration."
-		required:    false
+		description: """
+			Compression configuration.
+			Snappy compression implies sending push requests as Protocol Buffers.
+			"""
+		required: false
 		type: string: {
 			default: "snappy"
 			enum: {
@@ -122,9 +125,9 @@ base: components: sinks: loki: configuration: {
 					"""
 				none: "No compression."
 				snappy: """
-					Snappy compression.
+					[Snappy][snappy] compression.
 
-					This implies sending push requests as Protocol Buffers.
+					[snappy]: https://github.com/google/snappy/blob/main/docs/README.md
 					"""
 				zlib: """
 					[Zlib][zlib] compression.