- European authorities took steps to ban Meta from displaying ads targeting European users on its social media platforms.
- The ban comes shortly after Meta introduced generative AI tools to help advertisers better target ads and launched an ad-free subscription service for European users to comply with European Union privacy rules.
- Meta, which relies primarily on advertising for revenue, could be hit by advertising sales and risk a fine of up to 4% of its global turnover.
Meta (META), parent of Facebook and Instagram, could see its advertising sales hit and risk receiving a fine of up to 4% of its global turnover, while European authorities take steps to ban the networking giant. display targeted ads to European users on their social media platforms. .
The decision by the European Data Protection Board (EDPB) expands a ban previously imposed by Norway on Meta’s use of users’ personal data for advertising and covers 30 countries in the European Union (EU) and the Economic Area European (EEA). The CEPD indicated that final measures would be taken and that the ban would be imposed on Meta within two weeks.
Since August 7, Meta has been subject to a daily fine of 1 million kronor ($90,000) in Norway for failing to comply with its ban on targeted advertising.
The social media giant, which relies on advertising for most of its revenue, could be substantially affected by the expanded restrictions, which come shortly after Meta unveiled generative AI tools to help advertisers target better reach its audiences and launch an ad-free subscription. service for European users to comply with EU privacy regulations.
Earlier this week, Meta announced a monthly subscription service to use Facebook and Instagram without ads in the EU, EEA and Switzerland. However, Meta had suggested that advertisers could continue to use personalized advertising campaigns to reach European users who choose to use Meta’s free ad-supported services.
Meta shares fell 0.6% as of 12:30 p.m. ET on Thursday, but have gained more than 150% so far this year.