Meta Platforms Inc. has announced that it will change the legal basis for how Facebook and Instagram collect, process and use personal data to target advertising in the European Union. The move comes after Facebook was fined €390 million earlier this year by the EU’s privacy regulator for allegedly breaching data protection laws, and was told to stop using the “contract” legal basis for sending users ads based on their online activity.
Switching from Contractual Necessity to Legitimate Interests
Meta Platforms Inc. will now switch from using the “Contractual Necessity” basis of personal data collection to comply with EU policies under the General Data Protection Regulation (GDPR). Instead, they will use the “Legitimate Interests” basis to comply with privacy regulations in Europe. The contractual basis allows companies to collect data when necessary to execute a contract, while “Legitimate Interests” allows companies to use personal data in a way that individuals can reasonably expect.
This change in legal basis is expected to enhance user privacy and provide more options concerning how their data is handled without impacting Meta Platform’s targeted advertising business in the region.
Opt-out Options for Users
The Wall Street Journal reports that Meta Platforms Inc. plans to allow European users of Facebook and Instagram to opt out of certain highly personalized ads. It is working on offering a version of its services that will only target users with ads based on broad categories, providing users with better control over their personal data.
This move comes against a background of increasing public concern over social media platforms’ handling of personal information. Regulators are demanding more accountability from tech companies and online platforms.
Banning Political Ads
As another development regarding Meta platforms, various news sources including Financial Times reported that Meta is considering an all-out ban on political advertisements across its platforms In Europe due to concerns that Facebook and Instagram will not be able to comply with new EU regulations targeting online campaigns. Some Brussels policymakers are proposing rules that would force online tech groups to disclose information about political ads, including cost, payment, and views.
Meta executives are reportedly worried about the broad definition of ‘political ads’ and the difficulty of complying with new regulations. They may find it easier to turn down all paid advertising for political campaigns on their platforms.
Meta’s Switch from Necessity to Legitimate Interests Questioned
Not everyone is convinced that Meta’s move to switch from using personal data for ads as “necessary under the contract” to “legitimate interests” as a legal basis for processing personal data is adequate. According to noyb, a privacy advocacy group led by lawyer Max Schrems, this switch is also an illegal practice that violates the GDPR.
They claim that Meta’s new approach permits only one option, which noyb believes is a breach of the individual users’ right to data protection. They argue that Meta should provide a clear yes/no option where users must actively say yes if they choose to give up their fundamental rights.
Max Schrems states that Meta’s switch from one unlawful option to another is a “charade,” and noyb will take action to stop this practice.
Conclusion
Meta Platforms Inc.’s change in legal basis for personal data collection in Europe marks a significant step towards greater privacy for users of its platforms, Facebook and Instagram. The move not only reflects Meta’s efforts to comply with stricter data protection laws but also compliments public demand for better privacy protection across all social media platforms.
It is yet unclear whether these changes will make an impact among regulators enforcing data privacy rules, but the shift towards more user control over their personal data shows a willingness on behalf of Meta Platform’s leadership team to adapt its policies around compliance with GDPR standards. It signals a renewed commitment to restoring confidence among users who have expressed concerns about the potential misuse of personal data.
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