Has Meta managed to make money after the New Year? It doesn’t seem like it. In the latest news, Meta could be forced to make yet another round of significant changes to its European ad offerings. This came about after EU regulators ruled that the company has been “illegally forcing users to effectively accept personalized ads in its apps.”
The ruling, along with a $414 million fine, could have Meta restructure its current ad systems and how it gains user permission for such within its apps. The ruling suggests that Meta might have to get direct, legal consent from each of its 408 million EU users, lest it risk further fines.
Absolutely European
Essentially, Meta already gains individual permission for such, sneaking it into its long-winded terms and conditions. However, the ruling indicates that this might not be clear enough under GDPR guidelines. Wise. To rebut, Meta said that it plans to fight both the ruling and the fine, stating how it won’t allow either to impede its progress in Europe.
As Meta explains:
“We strongly believe our approach respects GDPR, and we’re therefore disappointed by these decisions and intend to appeal both the substance of the rulings and the fines.”
Considering the potential restrictions of its operations, Meta points out how it uses a ‘combination of legal bases to provide various services’, meaning that even if the ruling is upheld, it’ll still be able to deliver personalized ads in the region. Meta further notes that it has long relied on a legal basis called ‘Contractual Necessity’ to show people personalized ads, but now, EU officials are urging it to change its approach.
The way Meta views it, it’ll continue to offer personalized ads in pretty much the same way, only that it might need to clarify exactly how it plans to do that – which should minimally impact both users and advertisers. Meta believes that what EU regulators are pushing for won’t restrict its regular operations, only that it might change the legal clause under which it operates.
The Wrap
In the end, it’s more regulatory work for Meta and more processes and provisions added by the EU’s GDPR framework. Theoretically, it’s good since it provides more data protection for EU users, but practically speaking, it’s difficult to gauge whether or not the whole GDPR push has actually been beneficial. Historically, it seems that Meta has always had trouble with frameworks besides its own.
Either way, Meta will have 3 months to respond to the EU ruling, which, as it notes, would have its appeal and maybe even realign its usage terms around another viable legal clause in the region.
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