MENA Newswire News Desk: Meta Platforms has been ordered by the European Union’s top court to limit its use of personal data for targeted advertising, marking a significant blow to the company’s advertising model. The Court of Justice of the European Union (CJEU) ruled that Meta, the parent company of Facebook, cannot use sensitive personal information such as sexual orientation, race, or health data for personalized ads without clear and explicit user consent.
The ruling follows a complaint by Austrian privacy activist Max Schrems, who alleged that Facebook used his personal data, including information about his sexual orientation, to target ads at him, even though he had not disclosed this information on the platform. The complaint was initially brought to Austrian courts in 2020, and the case was later referred to the CJEU for clarification on the application of the General Data Protection Regulation (GDPR).
The CJEU’s decision underscores the principle of data minimization under GDPR, which requires companies to limit the collection and processing of personal data to what is necessary for specific purposes. The court ruled that Meta cannot collect and use all types of personal data indiscriminately for targeted advertising, highlighting that such data processing must be time-limited and specific to certain categories.
In response to the ruling, a Meta spokesperson stated that the company is reviewing the judgment and reiterated that it takes privacy seriously. Meta has invested over 5 billion euros to embed privacy into its products and offers users a range of tools to manage their data and advertising preferences. The company denied using sensitive data categories, such as sexual orientation, to personalize ads.
Max Schrems’ legal team, led by Katharina Raabe-Stuppnig, hailed the decision as a victory for privacy rights. “This ruling significantly restricts the amount of personal data Meta can use for advertising, even with user consent. It will impact Meta and other companies that rely on vast pools of personal data for their business models,” Raabe-Stuppnig said in a statement.
The ruling could have broader implications beyond the EU, as Meta and other tech giants face similar scrutiny in jurisdictions like the United Kingdom and the United States. Legal experts suggest that this case sets a precedent for how courts in other regions may interpret privacy laws and regulate the use of personal data for commercial purposes.
Meta has faced multiple legal challenges over its handling of personal data in the past, and this ruling is seen as a significant setback to its ability to leverage data for targeted advertising. As the company continues its transition toward the metaverse, this ruling may force it to rethink its data strategies and advertising models.