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Meta to ask for targeted ads consent in the EU

Wednesday 2 August 2023 15:16 CET | News

US-based Meta has agreed to ask EU-based users for consent before allowing businesses to perform targeted advertising based on their preferences.

 

Following this change, businesses will no longer be able to target EU-based users based on what kind of content they consume on services such as Instagram and Facebook unless the users in question have agreed to participate.

According to Meta, the change aims to address a number of evolving and emerging regulatory requirements in the EU region, particularly how its lead data protection regulator in the EU, the Irish Data Protection Commission (DPC), is interpreting GDPR in light of recent legal rulings, as well as anticipating the entry into force of the Digital Markets Act (DMA).  

Meta detailed that businesses operating in the EU have generally relied on various bases under GDPR for the purpose of processing advertising data. GDPR states that there is no hierarchy between legal bases, and none should be considered more valid than any other. However, the company analysed the feedback it received from the Irish DPC, including how it is interpreting recent decisions by the European Court of Justice, and eventually decided to ask for user consent. 

The company also wanted to clarify that the decision will have no immediate impact on their services in the EU. It’s also worth noting that advertisers will still be able to run personalised advertising campaigns to reach new customers and grow their businesses. Meta will share any further developments on the subject in the following months, as it continues to consult with regulators to make sure that the solution is in line with regulatory EU obligations, including GDPR and the upcoming DMA. 

Prior to this decision, Facebook and Instagram users agreed to allow their data to be used in targeted advertising when they signed for to the services' terms and conditions.

 

Meta has revealed that it will ask EU-based users for consent before allowing businesses to perform targeted advertising.

 

More information about the Digital Markets Act (DMA) 

The Digital Markets Act is a proposal that investigates giving smaller companies more competitive power in comparison to big tech giants such as Apple, Amazon, Google, and Meta. Apple has disputed the proposal for some time, listing the possible security issues the act could cause.

Some of the most noteworthy measures of the DMA include forcing Apple and Google to allow users to uninstall pre-installed apps on their devices, as well as forcing them to eliminate self-preferencing in search results. Beyond that, these two companies, as well as Meta, would also be required to provide more transparency when it comes to advertising metrics.


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Keywords: regulation, compliance, GDPR, data protection
Categories: Fraud & Financial Crime
Companies: Meta
Countries: Europe
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Fraud & Financial Crime

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