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Meta, formerly known as Facebook, has made a surprising announcement regarding a change in the legal basis used to process certain data for behavioral advertising in the EU, EEA, and Switzerland. The company will now require users in these regions to choose whether or not they want to see personalized ads based on behavior tracking on Facebook or Instagram. The change is in response to evolving regulatory requirements in the region, including how the Irish Data Protection Commission is interpreting GDPR and the anticipated entry into force of the Digital Markets Act.

This move comes after privacy expert Max Schrems led a struggle against forced consent to online tracking by filing complaints against Google, Facebook, WhatsApp, and Instagram. While the Irish Data Protection Commission initially supported Meta’s contention that it could bypass GDPR requirements, the European Data Protection Board overruled this stance and imposed a heavy fine on Meta. The board emphasized the need for a clear yes/no option for surveillance advertising.

In an attempt to work around the ruling by the EU’s top court, Meta switched the legal basis for its micro-targeted advertising to a claim of “legitimate interest.” However, a German competition case ruling suggested that Meta’s approach was invalid, leading to Norway’s temporary ban on surveillance-based advertising by Meta.

Meta has stated that there will be no immediate impact on its services in the region, and advertisers will still be able to run personalized advertising campaigns. However, it remains unclear how Meta plans to facilitate personalized advertising without extensive data tracking. Concerns have been raised by the Electronic Frontier Foundation and Max Schrems about the extent to which Meta will apply the consent requirement for all types of personal data used for ads.

The impact on Meta users outside the EU is yet to be seen. If Meta can offer personalized advertising in Europe without surveillance, it may raise questions about data protection standards in other regions. The UK’s Information Commissioner’s Office has already expressed concern and is assessing the implications for UK users.

As Meta abandons its surveillance advertising business model, it may put pressure on other companies to do the same. Data protection agencies are likely to take a similar view, potentially leading to legal action if privacy standards are not maintained.

(Image by Minette Lontsie)

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