With the next wave of EU data privacy laws coming in, Meta’s developing a new set of options for EU users only that would allow them to opt out of personalized ads. Meanwhile, the company’s also considering banning political ads in Europe entirely, as it works to bring itself into line with the updated rules.
“Users who wish to opt-out would have to submit an online form objecting to Meta’s use of their in-app activity for ads, and the company would then evaluate any user’s objection before implementing the change.”
That, at least theory-wise, would allow Meta to remain in line with the new EU regulations around personalized ad targeting, which it’s already fallen foul of in the past. Back in January, Meta was fined $US414 million for illegally forcing users to accept personalized ads in its apps. The ruling suggests that Meta requires individual consent from every single user to serve them personalized ads, which Meta says that it obtained, via clauses built into its user agreement. However, EU regulators say that this isn’t clear enough, which has forced the company into this latest reassessment of its process.
Meta’s still appealing the January ruling, and it’s confident that it can present an argument that is, in fact, adhering to these laws. As of now, it needs to update its systems or risk more fines for related breaches, which could also force it into more drastic measures, like completely banning all political ads in Europe.
Another element of the EU’s evolving digital advertising rules relates specifically to political promotions, as well as providing full data on who and how each campaign is funded. Meta has raised concerns that the definitions of this new element are unclear, which could make it difficult for the company to comply with such – so the alternative might be to eliminate political ads entirely, avoiding potential headaches.
That would have significant implications for political operators in the region, who are likely to pressure regulators to update the laws. However, should these laws go unchanged, that could have big implications for Meta’s broader ads ecosystem in the market, while also reducing ad intake, at a time when the company needs to keep it together.
The Wrap
It’s a significant stand-off for Meta, which could lead to major policy changes, in line with Europe’s constantly evolving data privacy laws. Almost every website, by now, has been forced to make changes because of EU regulations, with some even being forced to cut off ad options. In some ways, that makes sense, given the rising concerns around data control and usage, providing people with more options to manage their digital presence. In others, it’s a heavy-handed decision that may end up causing more harm than good, at least to the EU market.
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