Meta’s Proposal for Targeted Ads and Regulatory Timeline
Meta has announced its plan to introduce a new feature, enabling users to decide whether they want targeted ads based on their activity on the social media platform. The proposed implementation is contingent upon EU regulators’ approval and is aimed at resolving the ongoing dispute over the use of personal data for advertising in compliance with European privacy laws. The company expects the feature to be available in about three months, subject to regulatory greenlight.
Impact on Revenue Growth and Data Collection
With economic conditions causing a slowdown in Meta’s once-stellar revenue growth, the tech giant faced another challenge when Apple introduced the “Ask an app not to be tracked” option, restricting data collection from third-party advertising apps. Additionally, rules limiting targeting based on user behavior within Meta’s own apps could further affect its main revenue source.
EU Fines and Regulatory Uncertainty
Meta has faced significant fines from the Irish Data Protection Commission (DPC) for mishandling user data on Instagram and Facebook, reminds NIX Solutions. Moreover, the DPC imposed a record European fine for transferring user data to the US, breaching privacy regulations under the General Data Protection Regulation (GDPR). The company’s new app, Threads, experienced delays in Europe due to “regulatory uncertainty,” raising questions about compliance with GDPR and the EU’s Digital Markets Act (DMA).