Meta faces EU ban on targeted advertising: Here's why
The European Data Protection Board (EDPB) has decided to expand a prohibition on "behavioral advertising" for Facebook and Instagram, both owned by Meta. This will encompass 30 nations in the European Union and the European Economic Area. This ruling is a blow to Meta, which has resisted attempts to limit this type of advertising. The ban focuses on ads that collect user data, and if Meta is found non-compliant, it could face penalties amounting to 4% of its global revenue.
EDPB instructs Irish data regulator to impose ban
The EDPB has directed Ireland's data regulator, where Meta's European headquarters is situated, to enforce a permanent ban on the company's behavioral advertising within a two-week timeframe. The EDPB declared, "On 27 October, the EDPB adopted an urgent binding decision...to impose a ban on the processing of personal data for behavioral advertising on the legal bases of contract and legitimate interest across the entire European Economic Area."
Meta's response to the ban and subscription model
In response, Meta revealed its plans to allow users in the EU and EEA to give consent and intends to introduce a subscription model to meet regulatory demands. A spokesperson for the company stated, "EDPB members have been aware of this plan for weeks and we were already fully engaged with them to arrive at a satisfactory outcome for all parties," adding that this move "unjustifiably ignores that careful and robust regulatory process."
Impact on users in Europe
Approximately 250 million Facebook and Instagram users in Europe will be impacted. Since August 7, Meta has been subject to daily fines in Norway totaling 1 million crowns ($90,000) for violating user privacy by utilizing their data for advertising purposes. This ongoing fine was brought to the attention of the European regulator by Norway's Datatilsynet, as it only applied within Norway. However, failure to comply with the EU/EEA-wide ban could lead to a larger financial penalty for Meta.
