EU Court Rules Meta Must Limit Data Use for Targeted Ads

Fri Oct 04 2024
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BRUSSELS: Meta Platforms (META.O) has been ordered to limit the use of personal data collected from Facebook for targeted advertising, following a ruling by Europe’s top court that supports privacy activist Max Schrems.

Schrems took his complaint to an Austrian court, alleging he had been targeted by ads resulting from Meta’s personalized advertising practices. The Austrian tribunal then sought clarification from the Luxembourg-based Court of Justice of the European Union (CJEU), which ruled in favor of Schrems.

The CJEU stated, “An online social network such as Facebook cannot use all of the personal data obtained for the purposes of targeted advertising, without restriction as to time and without distinction as to type of data.” The court emphasized that the principle of data minimization, outlined in the EU’s General Data Protection Regulation (GDPR), supports this stance.

In response, Meta highlighted its investment of over 5 billion euros to enhance privacy in its products, asserting that it does not utilize special categories of data provided by users for ad personalization, and advertisers are prohibited from sharing sensitive data.

Schrems’ lawyer, Katharina Raabe-Stuppnig, welcomed the decision, stating, “Following this ruling, only a small part of Meta’s data pool will be allowed to be used for advertising, even with user consent. This ruling also applies to any other online advertising company that does not adhere to strict data deletion practices.”

Schrems has previously initiated several legal actions against Meta for alleged breaches of GDPR regulations.

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