Brussels, Belgium
In a series of decisions, European Unionâs privacy regulators have said that Facebook and Instagram parent company Meta Platformsâ Inc should not require users to agree to personalised advertisements based on their digital activity, said a report by the Wall Street Journal. This could affect the companyâs access to sell such ads which also reportedly contribute a significant amount to Metaâs revenue.
The personalised advertisements in question are the ones that the social media platforms show tp their users based on their activity, clicks and what they watch within Metaâs own apps. Notably, Meta users can opt out of ads based on their activity on other websites and apps, a provision that has been in place for years but is not applicable for ads data based on user activity on its own platforms.
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This comes after the European Union privacy regulators approved a series of decisions, in line with their privacy laws, which cannot be evaded by Meta using their terms of service as a justification, said a person familiar with the matter to the WSJ. However, the boardâs ruling which was approved on Monday has not been made public yet.
According to the report, if users are allowed to opt out of such targeted ads, platforms like Facebook and Instagram would have less access to user information which is used to build these ads, and people close to the company say these ads contribute significantly to the platformsâ revenue.
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Notably, the EU does not plan on directly ordering Meta to change its advertising practices, as it plans to call upon Irelandâs Data Protection Commission (DCP) to issue public orders and levy significant fines which would be in line with its decision, said the WSJ report, citing people familiar with the matter. Ireland is also home to Metaâs headquarters in the 27-country bloc.
However, Meta can appeal the potential Irish as well as the EU decision which would at least lead to suspension of the potentially lengthy litigation, but if it is upheld the company would have to make changes to its practices.
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Metaâs spokesperson told the WSJ, that EU law could allow for other legal justifications for its advertising practices and that it is too early to speculate since this is not the final decision. âWeâve engaged fully with the DPC on their inquiries and will continue to engage with them as they finalise their decision,â said the spokesperson.
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