European Data Regulator Extends Ban on Facebook and Instagram Behavioral Advertising Across EU and EEA, Meta Faces Potential Fines

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European Data Regulator Extends Ban on Facebook and Instagram Behavioral Advertising

OSLO, Nov 1 (Reuters) – The European data regulator has announced an extension of a ban on “behavioral advertising” on Facebook and Instagram to cover all 30 countries in the European Union and the European Economic Area. The ban, which targets users by collecting their data, is a setback for Meta Platforms (META.O), the owner of the social media services, which has opposed efforts to curb this practice.

Meta, formerly known as Facebook, could face a fine of up to 4% of its global turnover, according to the Norwegian data regulator. The decision was made by the European Data Protection Board (EDPB), instructing the Irish data regulator, where Meta’s European headquarters are located, to impose a permanent ban on the company’s use of behavioral advertising within two weeks.

“On 27 October, the EDPB adopted an urgent binding decision … to impose a ban on the processing of personal data for behavioral advertising on the legal bases of contract and legitimate interest across the entire European Economic Area,” stated the EDPB.

In response, Meta announced that it would give users in the EU and the EEA the chance to consent and would introduce a subscription model in November to comply with regulatory requirements. However, the EDPB argued that this development disregarded the robust regulatory process.

Since August 7, Meta has been subject to daily fines in Norway for breaching users’ privacy through the use of their data for advertising. The ongoing fine has been referred to the European regulator by the Norwegian data regulator. According to Tobias Judin, the head of the international section of the Norwegian data regulator, failure to comply with the EU/EEA-wide ban could result in a financial penalty of up to 4% of Meta’s global turnover.

The General Data Protection Regulation (GDPR), the EU’s rules on information privacy, would be the basis for the potential penalty. Although Norway is not an EU member, it is part of the European single market.

The decision affects approximately 250 million Facebook and Instagram users in Europe, according to Datatilsynet, the Norwegian data regulator.

Reporting by Gwladys Fouche, editing by Terje Solsvik and Tomasz Janowski

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