Meta Faces Increased Pressure from European Regulator Over Data Privacy

Social media giant Meta Platforms, known for its flagship platform Facebook and Instagram, is confronting mounting pressure from European privacy regulators over its data privacy practices. The company is considering a major policy shift that would give European users the option to decide whether they want to see ads targeted based on their interactions with Meta's apps.

The move comes as a response to years-long scrutiny from European authorities regarding the legality of behavioral ads, which utilize user activity data to personalize advertisements. According to sources familiar with the matter, Meta has proposed seeking user consent for such ads by the end of October, in an effort to address concerns raised by European privacy regulators.

Currently, Meta offers European users the ability to opt out of behavioral ads by completing a lengthy form on its help pages. However, this process has been criticized for its complexity and limited effectiveness in encouraging users to opt out.

The proposed change to seek explicit user consent for behavioral ads represents a significant departure from Meta's previous approach. Users would be presented with a clear choice to either accept or decline the display of such ads, in line with European Union data protection laws.

Meta's willingness to make this change follows a series of legal developments and regulatory actions. The company's initial reliance on its terms of service to justify behavioral ads faced backlash from privacy activist Max Schrems, resulting in a $430 million fine from Ireland's Data Protection Commission.

While Meta appealed the fine, it also revised its legal justification for behavioral ads, citing the "legitimate interest" of its business. However, a recent ruling by the European Union's top court emphasized the primacy of user privacy, stating that consent is necessary for behavioral ads to be shown.

In response to this legal shift, Ireland's privacy regulator, which serves as the lead authority for Meta due to its EU headquarters being in Ireland, expressed further concerns about the company's compliance with its earlier decision. Other European privacy regulators, including Norway, also raised objections to Meta's practices.

Meta's proposal to seek user consent for behavioral ads would align with the recent court ruling. The company indicated that this change would require a significant effort to implement, with a potential timeline of at least three months. Additionally, Meta offered the possibility of aligning this change with upcoming adjustments related to a separate EU regulation focused on data sharing and competition, which would require user consent for data mingling between a company's core services.

The outcome of this proposed shift remains to be seen, but it underscores the growing pressure on technology companies to prioritize user privacy and comply with evolving data protection regulations.