According to sources familiar with the matter, Meta Platforms Inc., also known as Meta, intends to comply with a European Union privacy order by allowing Facebook and Instagram users in Europe to opt out of certain highly personalized ads. This move is aimed at limiting the impact of the order. Starting Wednesday, Meta will offer EU users the option to select a version of its services that will only show them ads based on general categories, like age range and location, rather than using more specific data such as their viewing history or app activity within the Meta ecosystem.
In response to a regulatory crackdown in Europe, Meta (formerly Facebook) will be implementing changes to its advertising practices. From next week, European users of Facebook and Instagram who wish to opt out of personalized ads based on their activity on Meta's platforms will have to submit an online form objecting to Meta’s use of their in-app activity. However, critics have argued that this approach of using an opt-out rather than actively seeking opt-in consent may not satisfy all privacy activists and regulators.
This change follows a pair of landmark rulings from Ireland's Data Protection Commission that fined Facebook and Instagram for requiring users to agree to a contract that includes so-called behavioral ads. The Irish regulator gave Facebook and Instagram three months to stop relying on their contracts with users to justify such ads. Meta is currently appealing those rulings and fines but is bound to comply with them in the meantime.
The use of "first-party" data, such as a user's activity on Meta's own platforms, is one of the main tools for building customized audiences for personalized ads, which makes up a significant portion of Meta's core advertising business. Meta brought in $113.64 billion in advertising revenue in 2022, nearly a quarter of which came from Europe. The new changes will switch its privacy policy and terms and conditions to another legal justification under the law called legitimate interest when it comes to behavioral ads. However, this has also faced criticism from privacy activists, who argue that users must fully understand how their data is being used and have an easy way to opt-out.
This change follows a pair of landmark rulings from Ireland's Data Protection Commission that fined Facebook and Instagram for requiring users to agree to a contract that includes so-called behavioral ads. The Irish regulator gave Facebook and Instagram three months to stop relying on their contracts with users to justify such ads. Meta is currently appealing those rulings and fines but is bound to comply with them in the meantime.
The use of "first-party" data, such as a user's activity on Meta's own platforms, is one of the main tools for building customized audiences for personalized ads, which makes up a significant portion of Meta's core advertising business. Meta brought in $113.64 billion in advertising revenue in 2022, nearly a quarter of which came from Europe. The new changes will switch its privacy policy and terms and conditions to another legal justification under the law called legitimate interest when it comes to behavioral ads. However, this has also faced criticism from privacy activists, who argue that users must fully understand how their data is being used and have an easy way to opt-out.
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