Pierre T.
**META PROPOSES TO SEEK CONSENT FOR PERSONALIZED ADS IN EUROPE TO RESOLVE ONGOING DISPUTE**
The Wall Street Journal reports that Meta, the company formerly known as Facebook, is offering to make some of its personalized, targeted ads an up-front opt-in choice for users in the European Union. By seeking consent from EU users, Meta aims to end the ongoing fight over its use of personal data for advertisements under European privacy laws. Currently, EU users can opt out of targeted ads, but with Meta’s proposal, they will have the choice to opt in. This change will require users to actively allow the company to target ads based on their activities within Meta’s social media platforms. If the EU accepts Meta’s proposal, the company estimates it will need at least three months to implement the necessary adjustments.
**META’S PROPOSAL AND GENERALIZED TARGETING**
According to the Journal, Meta’s proposal intends to resolve its dispute with the EU regarding its use of personal data for ads. Presently, EU users can opt out of targeted ads; however, Meta still employs some broader demographics data, such as users’ general location and age range when targeting ads for those who have opted out. Although Meta’s new proposal maintains the option for generalized targeting, specific details of the proposed changes are yet to be disclosed.
**META’S REVENUE GROWTH IMPACTED LAST YEAR**
For Meta, its once unstoppable revenue growth experienced a setback last year due to challenging economic circumstances and Apple’s “Ask App Not to Track” prompt, which limited the amount of data Meta could gather from third-party apps. Now, with regulations potentially limiting targeting based on user activities within its own apps, Meta faces the possibility of further impact on its primary source of income.
**META’S LEGAL TROUBLES IN EUROPE**
Earlier this year, the Irish Data Protection Commission (DPC) fined Meta over $400 million for mishandling user data on its Instagram and Facebook platforms. More recently, the DPC imposed a record-breaking $1.3 billion penalty on Meta for transferring user data to the US, potentially infringing on citizens’ privacy rights under the General Data Protection Regulation (GDPR). Fortunately, the EU and the US have since agreed upon a framework that outlines conditions for tech companies to transfer and store user data in the US, provided they adhere to privacy provisions within the agreement.
**REGULATORY UNCERTAINTY DELAYS META’S THREADS APP**
Meta’s new shortform posting app, Threads, faced delays in Europe due to “regulatory uncertainty.” Meta is unsure if Threads, despite claiming compliance with the GDPR, meets the requirements outlined in the EU’s Digital Markets Act (DMA). The DMA mandates that tech gatekeepers, like Meta, avoid “self-preferencing” their own products and services. As Threads requires an Instagram account, it may potentially conflict with this rule.
Sources:
– [The Wall Street Journal](https://www.wsj.com/articles/meta-offers-to-seek-consent-for-highly-personalized-ads-in-europe-b520cbeb?mod=djemalertNEWS)
– [The Wall Street Journal](https://www.wsj.com/articles/meta-to-let-users-opt-out-of-some-targeted-ads-but-only-in-europe-44b20b6d?mod=article_inline)
– [The Verge](https://www.theverge.com/2022/7/27/23281294/facebook-meta-revenue-declines-for-first-time)
– [The Verge](https://www.theverge.com/2021/4/27/22405474/apple-app-tracking-transparency-ios-14-5-privacy-update-facebook-data)
– [The Verge](https://www.theverge.com/23789754/threads-meta-twitter-eu-dma-digital-markets)
– [The Verge](https://www.theverge.com/2023/1/4/23538750/ireland-dpc-meta-instagram-facebook-gdpr-violation-fines)
– [The Verge](https://www.theverge.com/2023/5/22/23732461/meta-eu-privacy-fine-us-data-transfers-1-3-billion)
– [The Verge](https://www.theverge.com/2023/7/4/23783790/eu-digital-markets-act-gatekeepers-apple-google-amazon-meta-tiktok)
– [The Verge](https://www.theverge.com/2023/7/10/23789695/eu-us-transatlantic-data-sharing-agreement)
