Meta will only be able to run advertising based on personal data if it has permission from its users, according to a confidential decision by the European Agency for the Defense of Online Privacy, as stated by a source with knowledge of the matter this Tuesday (6).
The Irish Data Protection Agency, which oversees Meta because the company’s European headquarters are in Dublin, was given one month to publish a decision based on the binding determination of the European Data Protection Board (EDPB).
The EDPB will likely require the Irish agency to set fines for the company, according to the source.
The decision marks a blow to the business model of large internet companies, based on targeted advertising and data collection from users of their services.
Meta’s shares plummeted nearly 7% near the end of trading on Tuesday, at US$114.15 (R$597.62). Google, Snap and Pinterest, which also rely on digital advertising, were down 2.8%, 7% and 5% respectively.
The case against Meta was triggered by a complaint by Austrian activist Max Schrems in 2018.
“Instead of having a yes/no option for the personalized ads, they just changed the consent clause in the terms and conditions. Not only is this unfair, it is clearly illegal. We are not aware of any other company that has attempted to ignore the GDPR in such an arrogant way,” Schrems said in a statement.
The 27-nation bloc’s privacy rules, known as the General Data Protection Regulation (GDPR), took effect in 2018.
Schrems said the decision by the European data protection body means Meta will have to allow users to have a version of all apps that don’t use personal data in ads and that the company will be able to use non-personal data to personalize adverts. Or, simply, you will have to ask users for permission to use the information.
A Meta spokesperson said the company is in discussions with the Irish agency.
“The DPC cannot comment on the content of the decisions at this time. We have a month to comply with binding EDPB decisions and we will publish the details by then,” said Ireland’s Data Protection Commission (DPC).
Meta may have to change its business model, explained Helena Brown, director of data and privacy at Addleshaw Goddard law firm in London.
“Meta may have to change its model to seek explicit consent from users. This will be a challenge for Meta to be able to explain its practices in a way that such consent can be considered legitimate and well-informed”, he explained.
Source: CNN Brasil
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