The European Union has mandated that Meta, the parent company of Facebook, must obtain consent before displaying personalized ads in the region. The Court of Justice of the EU ruled that Meta’s Facebook brand cannot process such a large volume of user data for customized ads without users’ explicit permission.
When asked for comment, Meta stated that it is currently evaluating the court’s decision and will provide further information in due course, as reported by The Wall Street Journal.
Meta is already appealing a €390 million fine (equivalent to approximately $425 million) imposed by the EU for requiring users of Facebook, Instagram, and WhatsApp to accept personalized ads as a prerequisite for using those platforms. The regulatory body insists on “freely given” consent for such features and claims that Meta violated the General Data Protection Regulation (GDPR) by demanding ad targeting data merely for basic access to Facebook, Instagram, and WhatsApp. The recent ruling states that the burden lies with the website operator to demonstrate that users willingly grant permission.
Moreover, this decision is part of a broader court ruling, indicating that local competition regulators, like Germany’s Federal Cartel Office, can consider compliance with other laws, including the GDPR, when investigating antitrust cases. Essentially, a country could interpret rule violations in one aspect as evidence of broader anti-competitive behavior.
The ruling lacks clarity, leaving the interpretation and implementation of this requirement uncertain. Meta may be required to seek consent before displaying personalized ads on Facebook and other platforms. While this could enhance user privacy, it may also impact the company’s financial performance. Meta previously warned of a decline in ad revenue after iOS 14 granted users the option to reject ad tracking in applications. Therefore, this ruling could deliver another blow that affects all users in the EU, regardless of their device.
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Frequently Asked Questions (FAQs) about personalized ads in the EU
Q: What is the recent ruling regarding personalized ads in the EU by Meta’s Facebook brand?
A: The recent ruling by the Court of Justice of the EU requires Meta’s Facebook brand to obtain consent before displaying personalized ads in the European Union. The ruling states that processing a large volume of user data for customized ads without users’ permission is not justified.
Q: Is Meta appealing a fine related to personalized ads?
A: Yes, Meta is currently appealing a €390 million fine imposed by the EU. The fine was issued because Facebook, Instagram, and WhatsApp users were required to accept personalized ads as a condition to use those platforms. The EU claims that this violated the General Data Protection Regulation (GDPR).
Q: How does the recent ruling impact user privacy?
A: The ruling aims to enhance user privacy by ensuring that users provide explicit consent before personalized ads are displayed. It puts the onus on the website operator, in this case, Meta, to prove that users willingly granted permission for such ads.
Q: Can local competition regulators consider compliance with other laws in antitrust cases?
A: Yes, the recent court ruling indicates that local competition regulators, like Germany’s Federal Cartel Office, can take into account compliance with other laws, such as the GDPR, when investigating antitrust cases. This means that rule violations in one aspect can be seen as evidence of broader anti-competitive behavior.
Q: How might this ruling affect Meta’s ad revenue in the EU?
A: The ruling could potentially impact Meta’s ad revenue in the EU. If Meta is required to seek consent before displaying personalized ads on Facebook and other platforms, it may result in a decline in ad revenue. This ruling follows the company’s previous warning of a revenue hit when iOS 14 allowed users to reject ad tracking in apps.
More about personalized ads in the EU
- EU Court of Justice ruling on personalized ads
- General Data Protection Regulation (GDPR)
- Meta’s appeal against EU fine
- Impact of iOS 14 on ad revenue
- Understanding antitrust laws and regulations
1 comment
woww so facebook needs permission for ads in EU. dat means dey cant jst show ads to anyone without askin first. its gud for privacy i guess bt may affct meta’s revenue. dey alredy apelin a big fine & now dis ruling. lots of chalenges for dem!