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Facebook owner Meta faces EU ban on targeted advertising
Global Banking & Finance Review®
Company
By Gwladys Fouche
OSLO (Reuters) -The European data regulator has agreed to extend a ban imposed by non-EU member Norway on “behavioural advertising” on Facebook and Instagram to cover all 30 countries in the European Union and the European Economic Area, it said on Wednesday.
The ban on such advertising, which targets users by harvesting their data, is a setback for U.S. tech giant Meta Platforms, the owner of the two social media services, which has opposed efforts to curb the practice.
The decision by the European Data Protection Board (EDPB) is an instruction to the data regulator of Ireland, where Meta’s European headquarters are located, to impose a permanent ban on the company’s use of behavioural advertising within two weeks, EDPB said in a statement to Reuters.
“On 27 October, the EDPB adopted an urgent binding decision … to impose a ban on the processing of personal data for behavioural advertising on the legal bases of contract and legitimate interest across the entire European Economic Area,” it said.
Meta on Wednesday said it had already said it would give users in the EU and the EEA the opportunity to consent, and would offer, in November, a subscription model to comply with regulatory requirements.
“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,” said a company spokesperson.
“This development unjustifiably ignores that careful and robust regulatory process.”
Meta is already subject to daily fines in Norway of 1 million crowns ($90,000) for breaching users’ privacy by using their data, such as locations or browsing behaviour, for advertising, a business model common to Big Tech.
The Norwegian data regulator, Datatilsynet, in September said it had referred the ongoing fine to the European regulator, as its fine was valid in Norway only and due to expire on Nov. 3. It will now be made permanent.
Norway is not a member of the EU but is part of the European single market.
The decision affects some 250 million Facebook and Instagram users in Europe, Datatilsynet said.
($1 = 11.1800 Norwegian crowns)
(Reporting by Gwladys Fouche, editing by Terje Solsvik and Tomasz Janowski)
Targeted advertising is a marketing strategy that uses data about individuals to deliver personalized ads based on their interests, behaviors, and demographics.
Data protection refers to the legal and regulatory measures that safeguard personal information from misuse, ensuring individuals' privacy and security.
Behavioral advertising is a form of online advertising that targets users based on their previous online behavior, such as browsing history and interactions.
User consent is the agreement given by individuals to allow their personal data to be collected and used for specific purposes, such as targeted advertising.
Regulatory actions are measures taken by authorities to enforce compliance with laws and regulations, often involving penalties for non-compliance.
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