The European Commission has announced that Meta, the parent company of Facebook and Instagram, will be required to allow users in the European Union to opt out of personalized advertising, effective next year. This decision comes after Meta was fined €200 million in April for failing to provide users with a lawful choice over data-driven advertising, under the bloc’s Digital Markets Act (DMA).
The Commission stated that this change will give consumers “full and effective choice” over how their information is used. Meta will be required to implement this change and allow users to opt out of data sharing for personalized ads. The Commission will seek feedback from Meta and other stakeholders once the changes are implemented.
A Meta spokesperson acknowledged the Commission’s announcement, while defending the company’s existing business model, stating that personalized ads are vital for Europe’s economy. The spokesperson also claimed that the company’s current practices already comply with the DMA.
This development comes amidst escalating tensions between Washington and Brussels over digital regulation. US officials have criticized the EU’s enforcement actions against American tech companies, arguing that the bloc’s rules amount to overregulation. Recently, the EU issued a fine of €120 million against Elon Musk’s platform X for alleged violations of the Digital Services Act’s clause on deceptive design practices.
The European Commission has defended its actions, stating that rules on data use, transparency, and user protection apply equally to all firms operating in the EU. European Council President Antonio Costa has also defended the EU’s regulatory autonomy, saying that the bloc’s digital rules reflect its own democratic model and understanding of free speech.
The decision to require Meta to allow users to opt out of personalized advertising is a significant development in the EU’s efforts to regulate digital markets and protect user data. The Commission’s actions demonstrate its commitment to enforcing the DMA and ensuring that tech companies comply with the bloc’s rules. As the EU continues to develop and implement its digital regulations, it is likely that other tech companies will face similar requirements and fines for non-compliance.
