Meta bows to EU regulators over targeted ads opt-in
Facebook and Instagram users will now be asked to opt in to personalised advertising
Meta has bowed to pressure from the EU's regulators and agreed to ask Instagram and Facebook users in the bloc for consent before targeting them with personalised ads.
The change, which could come as soon as October, will mean that users of Meta's social media services in the EU, European Economic Area (EEA) and Switzerland will be able to agree to targeted ads with a simple yes or no, rather than having to undergo a lengthy complex procedure to opt out.
"Today, we are announcing our intention to change the legal basis that we use to process certain data for behavioural advertising for people in the EU, EEA and Switzerland from ‘Legitimate Interests' to ‘Consent'," Meta said, in an update to its blog on Tuesday.
The decision follows years of legal battles between Meta and the EU regulators, which has seen the company fined several times for violations of data protection rules. The change does not cover users in the UK.
Meta suggested its decision was due to a shift by the Irish Data Protection Commissioner (DPC), which in January reassessed its position on personalised advertising and GDPR.
"This change is to address a number of evolving and emerging regulatory requirements in the region, notably how our lead data protection regulator in the EU, the Irish Data Protection Commission (DPC), is now interpreting GDPR in light of recent legal rulings, as well as anticipating the entry into force of the Digital Markets Act (DMA)," Meta's post said.
The DMA bans anti-competitive behaviour by large tech companies that act as "gatekeepers" to the web.
A number of recent decisions by regulators have put pressure on Meta to change the way it tracks users.
In July, Norway decided to ban Facebook and Instagram from tracking users online. The ban was due to commence this month.
In January, Meta was fined $400 million by European regulators and told to stop serving ads based on personal data until it was properly compliant with GDPR's consent requirements, including opt-in. Regulators rejected a claim by Meta that its use of personal data is covered by contractual law.
Meta has been trying to limit the scope of any changes by making minor concessions. In March, it was reported that Facebook users in Europe would be able to opt out of some of the highly targeted advertising on the platform, and instead opt in to a new, less targeted regime.
The new European opt-in requirements will likely have a significant impact on Facebook's revenues, just as Apple's 2021 change to its App Store privacy requirements did.
Meta moved to reassure advertisers that they would not be adversely affected.
"Once this change is in place, advertisers will still be able to run personalised advertising campaigns to reach potential customers and grow their businesses," Meta's blog said. "We have factored this change into our business outlook and related public disclosures made to date."
Privacy activist and lawyer Max Schrems, whose company nyob has scored several legal victories against Meta in the European courts, welcomed the move but added that he was waiting to see the detail. The scope of the consent is unclear, he said.
"We will see if Meta is actually applying the consent requirement to all use of personal data for ads," wrote Schrems in a blog post.
"So far they talk about 'highly personalised' or 'behavioural' ads and it's unclear what this means. The GDPR covered all types of personalisation, also on things like your age, which is not a 'behaviour'. We will obviously continue litigation if Meta will not apply the law fully."