Facebook and Instagram are no longer allowed to display ads in the Netherlands and other European countries that are based on users’ internet behavior. These personalized ads are against European privacy rules. This was decided by the European privacy watchdog association, the European Data Protection Board (EDPB).
According to Aleid Wolfsen, chairman of the Dutch Data Protection Authority and the Netherlands’ representative on the EDPB, Meta has known for a long time that personalized advertising is simply not allowed in the EU. ‘The Dutch judge wrote a very strict ruling on this at the beginning of this year. Irish colleagues have been working to implement this for some time. Now all the EU countries are saying together: ‘Now this will be over, and in a few weeks.’
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Meta, the parent company of Facebook and Instagram, is based in Ireland. The EDPB has instructed regulators in the country to take action within two weeks to ensure that social media complies with the ban. If they do not achieve this, ‘heavy fines’ will follow, Wolfsen said.
Subscription arrived late
Earlier this week, Meta announced a new paid subscription option for European users. Anyone who pays a contribution of 13 euros per month will no longer see ads. In August, the company announced that it would ask European users for permission to place personalized ads.
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‘The inspectors have been aware of these plans for weeks and we are in contact with them to achieve a good outcome for all parties. “This development ignores careful and robust processes without justification,” the company told Reuters.
Wolfsen called it an ‘incomprehensible reaction’. He pointed out that this has long been against the rules. ‘It should have stopped yesterday. Meta may want to set things up nicely later, but that doesn’t make it legal right now.’
With permission
Anyone who gives explicit permission to personal ads will continue to see them. “There’s nothing wrong with your permission, but Meta hasn’t asked for permission,” said the AP Chair. Regulators stated that they had reviewed the conditions of Facebook and Instagram users, but these also had no legal basis for displaying personalized ads. ‘That’s not allowed without permission.’
Independent technology advisor and Platform161 founder Marco Kloots suspects that Meta is letting its users choose between paying or granting permission. ‘There will be people who don’t want both, that group could be marginalized. This will have an impact on Meta, but how big is the question.’
Meta will probably continue ad-free subscriptions, Kloots thinks. ‘Of course Meta doesn’t care whether its revenue comes from advertising or is paid directly by users. But if the money doesn’t come, they will make a different decision.’
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