Meta will only be able to run ads based on personal data with user consent, according to a confidential decision by the EU’s privacy watchdog.
Meta will only be able to run ads based on personal data with user consent, according to a confidential decision by the EU’s privacy watchdog, a person familiar with the matter said. on Tuesday, a blow to American social media.
The Irish Data Protection Authority, which oversees Meta because its European headquarters are located in Dublin, has had a month to issue a ruling based on a binding decision by the European Data Protection Commission. (EDPB).
The EDPB will likely ask the Irish agency to issue fines, the person said, requesting anonymity because of the sensitivity of the matter.
Big Tech’s model of targeted advertising and the way data is collected and used has attracted close regulatory scrutiny around the world.
Shares of the company fell 6.2% in mid-session trading. GoogleSnap and Pinterest depend on digital advertising, down 2.2%, 8% and 4% respectively.
The Irish case against Meta was triggered by a complaint by Austrian privacy activist Max Schrems in 2018.
“Instead of having a yes/no option for personalized ads, they just moved the consent clause in the terms and conditions. This is not only unfair but also clearly illegal. We I don’t know of any other company that has attempted to ignore GDPR in such an arrogant manner,” Schrems said in a statement.
He said the EDPB ruling means that Meta must allow users to have versions of all application does not use personal data for advertising while the company is still allowed to use non-personal data to personalize ads or simply ask users for consent.
The 27-nation bloc’s landmark privacy rules known as the General Data Protection Regulation went into effect in 2018.
A spokesperson for Meta said Meta is interacting with the Irish agency.
“GDPR allows for a wide range of legal bases under which data can be processed, other than consent or contract performance. Under GDPR, there is no hierarchy between these legal bases and no basis. Which facility is considered better than the other,” the spokesperson said.
Apple’s new privacy rules, which restrict digital advertisers from tracking iPhone users, are also a major blow to Facebook parents.
An EDPB spokesman declined to provide details on the decisions made. The agency said it had stepped in after other national watchdogs disagreed with the Irish agency’s draft decision.
Its draft decision on Meta’s mother Facebook and Instagram focuses on the legality and transparency of behavioral advertising processing, while its decision on WhatsApp regarding the legality of processing for the purpose of service improvement.
“The DPC is unable to comment on the content of the decisions at this time. We have one month to adopt the EDPB’s binding decisions and will then publish the details,” the Irish Data Protection Commission said. said.
Helena Brown, head of data & privacy at London-based law firm Addleshaw Goddard, said Meta may have to change its business model.
“The direction seems to be that European regulators will not allow Meta to hide behind the ‘service provision’ as a basis for using personal data for behavioral advertising,” she said.
“Instead, Meta may need to change its approach to seeking explicit, unambiguous consent. It will be a challenge for Meta to be able to interpret its activities in a way that consents. that could be legal and well informed,” Brown said.
