Tuesday, 02 January 2024 12:17 GMT

Meta Forced to Overhaul Advertising Policy in EU


(MENAFN) Meta is set to overhaul its advertising practices in the European Union, the European Commission announced Monday.

The decision follows a €200 million ($233 million) fine imposed on the Facebook and Instagram parent in April under the EU’s Digital Markets Act (DMA) for failing to offer users a lawful choice regarding data-driven advertising.

According to the Commission, starting next year, EU users will be able to opt out of data sharing for personalized ads, ensuring what Brussels called “full and effective choice” over how their information is used. The regulator added that it will solicit feedback from Meta and other stakeholders once the changes take effect.

A Meta spokesperson responded to the announcement, defending the company’s business approach: “personalized ads are vital for Europe’s economy.” The spokesperson also emphasized that the company believes its current practices already comply with the DMA.

The policy shift comes amid rising tensions between Washington and Brussels over digital regulations. US officials have repeatedly criticized EU enforcement actions against American tech firms, arguing that the bloc’s rules constitute overregulation.

Earlier this month, the EU issued its first non-compliance ruling against Elon Musk’s platform X, fining it €120 million ($140 million) for alleged breaches of the Digital Services Act’s rules on deceptive design practices.

US Secretary of State Marco Rubio denounced the ruling as “an attack on all American tech platforms and the American people,” while US Vice President J.D. Vance accused Brussels of punishing X “for not engaging in censorship.”

Musk reacted by calling the EU a “bureaucratic monster” and urging that the bloc be “abolished.”

The European Commission defended its actions, noting that regulations on data use, transparency, and user protection apply to all companies operating in the EU. European Council President Antonio Costa also emphasized the bloc’s regulatory independence, stating that its digital rules reflect Europe’s own democratic model and interpretation of free speech.

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