Meta’s Facebook Faces Consent Requirement for Customized Ads in EU

Meta, the parent company of Facebook, has been directed to obtain user consent prior to displaying Personalized Ads by the Court of Justice in the European Union (EU). The court stated that the volume of data processing required for customized ads cannot be justified without users' permission. Meta is currently evaluating the decision and plans to provide further comments in the future.

This ruling comes as Meta is already appealing a €390 million EU fine for requiring users of Facebook, Instagram, and WhatsApp to accept personalized ads as a condition for using the platforms. The EU considers "freely given" consent essential for such features and alleges that Meta violated the General Data Protection Regulation (GDPR) by requesting ad targeting data as a prerequisite for basic platform usage. The Court of Justice's latest ruling places the burden of proof on site operators to demonstrate that users have willingly granted permission.

The broader court finding suggests that local competition regulators, like Germany's Federal Cartel Office, can consider compliance with other laws, including the GDPR, when investigating antitrust cases. This means that violations in one area could be viewed as evidence of broader anti-competitive behavior.

While the ruling lacks specificity regarding its practical interpretation, it could require Meta to seek permission for personalized ads on Facebook and other platforms. This may enhance user privacy but could impact the company's ad revenue. Meta previously experienced a revenue decline when iOS 14 allowed users to reject ad tracking in apps, and this ruling could further affect all EU users, regardless of their device.

The decision reflects ongoing efforts to balance data privacy and advertising practices in the EU, highlighting the challenges faced by tech companies in aligning with GDPR requirements while delivering personalized ad experiences.