Facebook, Instagram Face EU Ad Ban Extension Across 30 Countries

The European data regulator has recently agreed to extend the ban imposed by non-EU member Norway on "behavioral advertising" on Facebook and Instagram. This ban will now cover all 30 countries in the European Union and the European Economic Area.

The decision comes as a blow to Meta Platforms, the U.S. tech giant that owns these two social media services, as it has been strongly opposing efforts to curb this practice, according to Reuters.

Potential Penalties and Regulatory Measures

Meta Platforms risks facing fines of up to 4% of its global turnover, according to the Norwegian data regulator. The European Data Protection Board (EDPB) has instructed the data regulator of Ireland, where Meta's European headquarters are located, to impose a permanent ban on the company's use of behavioral advertising within two weeks.

India Today reported that the EDPB, in an urgent binding decision on October 27, mandated a ban on the processing of personal data for behavioral advertising throughout the entire European Economic Area.

In response, Meta has stated its intention to offer users within the EU and the EEA the opportunity to provide consent and comply with regulatory requirements. Accordingly, Meta plans to introduce a subscription model in November.

Since August 7, Meta Platforms has been facing daily fines in Norway amounting to 1 million crowns ($90,000) due to privacy breaches involving using users' data for advertising purposes. The Norwegian data regulator, Datatilsynet, referred the ongoing fine to the European regulator for further action.

Impact and Reach of the Ban

The introduction of a permanent ban signifies a significant development. Tobias Judin, the head of Datatilsynet's international section, warns that non-compliance with the EU/EEA-wide ban would be considered a violation of the General Data Protection Regulation (GDPR), subjecting Meta to potential penalties of up to 4% of its global turnover. GDPR, the EU's rules on information privacy, holds companies accountable for safeguarding user data and ensuring compliance with stringent regulations.

This decision affects approximately 250 million Facebook and Instagram users in Europe, highlighting the broader implications for digital advertising practices. Despite not being a member of the EU, Norway's decision to extend the ban demonstrates its commitment to upholding privacy regulations and aligning itself with the European single market.

Photo: Solen Feyissa/Unsplash