Meta, which owns Facebook and Instagram, is facing a regional ban in the European Union (EU) for flouting privacy regulations through its targeted or behavourial advertising practices.
The move arrives after Norway’s data regulator, Datatilsynet, urged the European Data Protection Board (EDPB) to extend the fine it imposed on Meta in August for privacy violations. The breaches concerned the personal data of Instagram and Facebook users across the country, which Meta deployed for targeted advertising.
On August 7, Meta landed a daily fine amounting to $90,000 by the Norwegian regulator for processing personal data of users, including their physical location and browsing activities, for behavioural advertising without obtaining informed consent. The watchdog had asked Meta to take corrective measures. Subsequently, it forwarded the fine to the EDPB in September, calling for it to be extended over to other EU countries.
The company had been warned about its advertising practices before the fine was imposed, but it continued to run tracking ads to harvest personal data in the country.
The European regulator is set to extend the penalty to all 30 EU countries, where Meta’s targeted advertising practices will be completely banned. The EDPB has directed Ireland’s Data Protection Commission (DPC) to impose a permanent ban on Meta’s processing of personal data for behavioural advertising within two weeks, according to latest reports.
Meta, on the other hand, said the company is already rolling out options for users to give consent for the collection of their data. “EDPB members have been aware of this plan for weeks and we were already fully engaged with them to arrive at a satisfactory outcome for all parties,” a Meta spokesperson said. “This development unjustifiably ignores that careful and robust regulatory process.”
The company is also launching a subscription model in the region to meet regulatory requirements, the statement added. The paid service will allow EU consumers to use Facebook and Instagram without any advertisements and the packages will range from €9.99 to €12.99 a month for web, iOS, and Android users.
Datatilsynet imposed the fine on Meta under the EU’s General Data Protection Regulation (GDPR). The legislation enables EU countries to implement temporary three-month restrictions against tech companies in case of data breaches that require immediate attention, The daily fine will expire on November 3, 2023; however, Meta could end up with a financial penalty worth up to 4 per cent of its global turnover.
Meta had sought an injunction against the fine, which the Norwegian regulator contested. It argued there was no basis for Meta to seek injunction against the data breaches resulting from its behavioural advertising practices. The court too backed the regulator’s decision to fine the company and require corrective measures regarding targeted advertising.
