Personalized ads can only be run by Meta with explicit user consent, EU watchdog rules

December 07, 2022 By Monica Green

(Image Credit Google)

The European Union privacy regulators' decision now poses a threat to further cut Meta's ad revenue next year, something the company has already been suffering with this year. A source familiar with the situation told Reuters that the European Data Protection Board determined on Monday that Meta cannot continue to target adverts based on its own users' online behavior, such as the Facebook profiles they have clicked or the Instagram reels they have viewed. According to Reuters, Meta might be subject to "hefty fines" if the EU data privacy watchdog has its way because it continues to rely on its terms of service to obtain user agreement for displaying tailored adverts. The Wall Street Journal said that this choice has not yet been made public, and it won't be finalized until the Data Protection Commission (DPC) of Ireland publishes orders to the general public. It might take a month, and Meta has the right to challenge either judgment at any time. Mark Zuckerberg's Metaverse Statement Dropped Meta Stock Nearly 20%

Mark Zuckerberg's Metaverse Statement Dropped Meta Stock Nearly 20%

According to reports, neither board is yet able to remark on their choices. According to Meta, it is not possible to discuss any potential appeals until the DPC has made its final decision. When Apple revised its privacy settings to make it simple for consumers to refuse third-party data tracking, it severely hurt Meta's ad revenue. Users of Meta platforms, such as Facebook and Instagram, could already choose not to have their browsing habits tracked by Meta on the websites they visited, but by signing up for the platforms, they consented to Meta tracking their clicks and taps on other Meta platforms. If the DPC sides with the EU board, that might alter, threatening to further limit Meta's access to behavioral data. Additionally, according to AdAge, Meta was already having trouble with advertisers losing faith in its capacity to successfully target advertising. If the DPC upholds the decision of the EU watchdog group, it would likely have to redesign its advertising platform again. According to a Meta representative, the decision of the EU oversight committee "is not the final judgment, and it is too early to predict." Meta

No legal basis for data processing "should be deemed better than any other," according to Meta's spokesman, because the EU's General Data Protection Regulation "allows for a range of legal grounds under which data can be processed, beyond consent or the fulfillment of a contract." " The DPC has "engaged completely with Meta on their inquiries and will continue to communicate with them as they finalize their decision," nevertheless.

By Monica Green

I am specialised in latest tech and tech discoveries.

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