Thursday, January 5, 2023

EU law declared Meta's advertising activities to be unlawful, and they were fined €390 million

Meta’s ad practices ruled illegal under EU law, fined €390m


In London: After EU regulators discovered that Meta had illegally compelled users to effectively accept personalised advertisements, Meta suffered a significant defeat on Wednesday that could severely undermine its Facebook and Instagram advertising businesses. Meta may be forced to make costly adjustments to its advertising-based EU business as a result of the decision, which includes a $414 million fine. Since the 27-nation bloc enacted a landmark data privacy law to prevent Facebook and other businesses from collecting information about users without their consent, this decision is one of the most significant. In 2018, the law took effect.

The case rests on Meta's ability to obtain users' legal permission to collect their data for personalized advertising. The lengthy statement that users must accept before accessing services like Facebook, Instagram, and WhatsApp is included in the company's terms of service agreement. This basically states that users must either allow their data to be used for personalized ads or stop using Meta's social media services altogether. Meta's main EU regulator, the data privacy board in Ireland, stated that EU authorities determined that Meta violated the General Data Protection Regulation (GDPR) by essentially forcing users to accept personalized ads by including the legal consent in the terms of service.

Meta has three months to explain how it will abide by the decision. Although the company is not required to do anything as a result of the decision, Meta may now allow users to choose whether or not they want their data used for such targeted promotions. One of Meta's most valuable parts would be cut off if a large number of users choose not to share their data. The announcement on Wednesday is about two complaints that were made in 2018 against Meta. Meta stated that it would challenge the decision. Facebook stated in a statement, "We are disappointed by these decisions because we strongly believe our approach respects GDPR."

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