The European data regulatory body has concurred to expand the prohibition initiated by Norway, a non-EU member, on “behavioural advertising” on Facebook and Instagram to encompass all 30 European Union and European Economic Area nations, as announced on Wednesday.
This restriction on advertising practices that involve data harvesting to target users is a setback for Meta Platforms (META.O), the prominent U.S. tech corporation that owns both of these social media platforms, as it has consistently opposed efforts to restrict such practices.
Meta faces the potential of incurring fines of up to 4% of its worldwide revenue, according to the Norwegian data regulator. The European Data Protection Board (EDPB) has instructed the Irish data regulatory authority, where Meta’s European headquarters are situated, to institute a permanent ban on the company’s utilization of behavioural advertising within two weeks, as indicated in a statement provided to Reuters.
“On October 27, the EDPB adopted a binding and urgent decision… to enforce a ban on the processing of personal data for behavioural advertising based on contract and legitimate interest across the entire European Economic Area,” the statement reads.
Meta, in response, declared on Wednesday that it had previously communicated its intention to allow users in the EU and EEA the choice to provide consent and, beginning in November, it will introduce a subscription model to adhere to regulatory mandates.
A representative from the company stated, “EDPB members have been aware of this plan for weeks, and we were already in close discussions with them to achieve a mutually satisfactory resolution.” The representative also expressed that this recent development unreasonably disregards the extensive regulatory procedure.
Since August 7, Meta has been facing daily fines of 1 million crowns ($90,000) in Norway for violating users’ privacy by employing their data, such as their locations or browsing behaviour, for advertising, a common business model among major tech companies.
In September, the Norwegian data regulator, Datatilsynet, announced that it had passed on the ongoing fine to the European regulator, as the fine was only applicable within Norway. While this particular fine will come to an end on November 3, Meta could confront the possibility of much more substantial financial penalties, according to Tobias Judin, who serves as the head of Datatilsynet’s international division.
He explained, “Since we will now have a permanent ban, failing to comply with the EU/EEA-wide ban would itself constitute a violation of the GDPR, which could result in penalties of up to 4% of global revenue.” GDPR, which stands for General Data Protection Regulation, constitutes the EU’s framework for data privacy regulations.
It is crucial to note that while Norway is not a European Union member, it is part of the European single market. This decision will impact approximately 250 million users of Facebook and Instagram across Europe.
