E.U. Limits Meta's Facebook Ads Data

A Big Change for Meta Platforms

In a major decision, the highest court in Europe has ruled that Meta Platforms, the company behind Facebook, must limit how it uses personal data for targeted ads. Even if users have agreed to share their information, Meta now faces restrictions on how they can use that data for advertising.

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This ruling could have a big impact on businesses that rely heavily on ad revenue in Europe.

What the Court Decided

The Court of Justice of the European Union (CJEU) made it clear that social networks like Facebook cannot freely use all the personal data they collect for ads without any restrictions. According to the court, there must be limits on how long companies can use this data and which types of information they can utilize. This aligns with Europe’s strict privacy laws, particularly the General Data Protection Regulation (GDPR).

The court pointed out that companies need to follow Article 5(1)(c) of the GDPR, which requires them to only collect and use the data they truly need. This means businesses cannot endlessly collect, analyze, or use personal information for targeted advertising.

The Story Behind the Lawsuit

The lawsuit was initiated by privacy activist Max Schrems, who co-founded a platform called “None of Your Business.” Schrems argued that Meta had targeted him with personalized ads based on his sexual orientation. This led to concerns about how Meta uses personal data from its users.

The court sided with Schrems, stating that even if someone has shared personal details in a public forum, social media platforms cannot use third-party data to target them with ads based on sensitive topics like sexual orientation.

A Win for Privacy Advocates

Noyb, an Austrian privacy group, welcomed the court’s decision. They noted that many online ad companies, including Meta, have long ignored GDPR rules on limiting and deleting personal data. According to the group, the verdict is a clear reminder that companies need to respect data minimization rules, regardless of whether users consent to targeted ads.

The decision is expected to force other ad-driven businesses to tighten their data practices, particularly around deletion periods and the type of data they use for ads.

Meta’s Response and Future Implications

Meta responded by stating that it has invested heavily in making its products more privacy-friendly. They also emphasized that they do not use sensitive user data to personalize ads and do not allow advertisers to share this type of information.

This ruling comes at a time when other tech companies are also facing legal challenges. For example, Texas Attorney General Ken Paxton recently sued TikTok for allegedly violating children’s privacy laws. The lawsuit claims that TikTok failed to provide parents with the tools needed to control privacy settings and targeted ads for minors.

What This Means for Advertising

The ruling sends a strong message to all companies in the online advertising space. Moving forward, businesses must take extra care to ensure they are not overstepping privacy boundaries. While companies like Meta have been able to use personal data for ads without many limits in the past, that era is likely coming to an end in Europe.

This decision may lead to stricter privacy controls and clearer guidelines on how long companies can store and use personal information for ads.

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