EU set to bar Meta from ads based on personal data
Meta will only be able to run advertising based on personal data with users' consent, according to a confidential EU privacy watchdog decision, a person familiar with the matter said on Tuesday, in a blow to the U.S. social network.
The Irish data protection agency, which oversees Meta because its European headquarters is located in Dublin, has been given a month to issue a ruling based on the European Data Protection Board's (EDPB) binding decision.
The EDPB will likely require the Irish body to hand out fines, the person said, asking not to be named because of the sensitivity of the issue.
Big Tech's targeted ad model and how data is collected and used has drawn regulatory scrutiny around the world.
Shares of the company were down 6.2% in mid-session trade. Google, Snap and Pinterest which are reliant on digital advertising, fell 2.2%, 8% and 4% respectively.
The Irish case against Meta was triggered by a complaint by Austrian privacy activist Max Schrems in 2018.
"Instead of having a yes/no option for personalised ads, they just moved the consent clause in the terms and conditions. This is not just unfair but clearly illegal. We are not aware of any other company that has tried to ignore the GDPR in such an arrogant way," Schrems said in a statement.
He said the EDPB's ruling means that Meta must allow users to have a version of all apps that do not use personal data for ads while the company would still be allowed to use non-personal data to personalise ads or simply ask users for consent.
The 27-country bloc's landmark privacy rules known as the General Data Protection Regulation went into effect in 2018.
Meta is engaging with the Irish body, a Meta spokesperson said.
"GDPR allows for a range of legal
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