Facebook Owner Meta Faces European Union Ban on Targeted Advertising

Facebook Owner Meta Faces European Union Ban on Targeted Advertising

It is a huge setback for the United States technology giant

The European data regulator has extended a ban imposed by non-European Union (EU) member Norway on ‘behavioral advertising’ on Facebook and Instagram to cover all 30 countries in the EU and the European Economic Area (EEA).

The ban on such advertising, which targets users by harvesting their data, is a setback for the US tech giant Meta Platforms, the owner of the two social media services, opposing efforts to curb the practice.

The Norwegian data regulator Datatilsynet stated that Meta runs the risk of getting fined up to 4 percent of its global turnover.

The European Data Protection Board (EDPB) said that its decision was an instruction to the data regulator of Ireland, where Meta's European headquarters are located, to impose a permanent ban on the company's use of behavioral advertising within two weeks.

It stated, “On 27 October, the EDPB adopted an urgent binding decision to impose a ban on the processing of personal data for behavioral advertising on the legal bases of contract and legitimate interest across the entire European Economic Area.”

However, Meta said it had already agreed to provide users in the EU and the EEA the opportunity to consent, and in November would offer a subscription model to comply with regulatory requirements.

The spokesperson for Meta remarked, “The EDPB members have been aware of the plan for weeks and we were already fully engaged with them to arrive at a satisfactory outcome for all parties. This development unjustifiably ignores that careful and robust regulatory process.”

Since 7 August, Meta in Norway has been subject to daily fines of 1 Million Crowns ($90,000) for breaching users' privacy by using their data, such as locations or browsing behavior, for advertising a business model common to Big Tech.

According to Tobias Judin, the head of Datatilsynet's international section, in September, the Norwegian data regulator had stated that it referred the ongoing fine to the European regulator, as it was only valid in Norway. The fine would expire on 3 November, but Meta could risk a much heavier financial penalty.

He added, “Since we will now get a permanent ban, non-compliance with the EU/EEA-wide ban would in itself be a violation of the GDPR, which could be sanctioned with up to 4 percent of global turnover.”

The GDPR (General Data Protection Regulation), is the EU's rules on information privacy. While Norway is not a member of the EU, it is a part of the European single market.