A top European Union privacy regulator ruled that Meta Platforms Inc. cannot use contracts with Facebook and Instagram users to send them activity-based ads, dealing a significant blow to the digital advertising industry in the region.
Meta, the parent company of Instagram and Facebook, has announced that it disagrees with the recent ruling made by Ireland’s Data Protection Commission on Wednesday, which imposed fines of 390 million euros (approximately $411 million) on the company for violating EU privacy laws.
The ruling stated that Meta had violated these laws by claiming that the sending of activity-based ads to users was necessary in order to fulfill contracts with them. Meta has stated that it plans to appeal this ruling. This decision represents one of the largest blows to the digital advertising industry in the European Union to date.
The possibility of ongoing litigation for several years raises concerns, as the upheld decisions could require Meta to allow users to opt-out of ads that are based on individual user interactions with its own apps. This could potentially harm one of the company’s core businesses.
The potential outcome of this situation highlights the impact that these types of rulings can have on the operations and financial success of a business. It is important for companies to ensure that they are in compliance with all relevant laws and regulations in order to avoid similar negative consequences.