EU Court Delivers Major Blow to Meta’s Ad-Targeting Practices
The Court of Justice of the European Union (CJEU) has issued a landmark ruling that significantly limits how Meta and other social media platforms can retain and use personal data for advertising purposes in the EU. The decision reinforces strict data minimization principles under the General Data Protection Regulation (GDPR).
Key Implications of the Ruling
- Time limits on data retention: Social networks can no longer indefinitely store user data for ad targeting
- GDPR compliance mandate: Platforms must implement clear data retention policies aligned with GDPR’s data minimization requirements
- Potential financial impact: Violations could result in fines up to 4% of global revenue - potentially billions for Meta
Meta spokesperson Matt Pollard stated: “We await the publication of the Court’s judgment and will have more to share in due course.” The company emphasized its €5 billion investment in privacy protections and user control tools.
The Schrems vs. Facebook Legacy Continues
The case originated from a 2014 challenge by privacy activist Max Schrems through his organization noyb. After years of legal battles, the Austrian Supreme Court referred key questions to the CJEU in 2021.
Katharina Raabe-Stuppnig, noyb’s lawyer, commented: “This ruling means only a small part of Meta’s massive data pool can be used for advertising - even with user consent. It sets a precedent for all online advertisers.”
Two Critical Rulings in One Decision
- Data Retention Limits: The court affirmed that indefinite retention of personal data for ad targeting violates GDPR principles
- Sensitive Data Protection: Even publicly shared sensitive information cannot be used for advertising purposes
Raabe-Stuppnig highlighted the importance of protecting sensitive data: “The CJEU rightly rejected the notion that public criticism should forfeit data protection rights.”
The Broader Impact on Digital Advertising
This decision fundamentally challenges the surveillance-based advertising model:
- Data minimization requirements: Platforms must develop systematic data deletion protocols
- Reduced profiling capabilities: Limits on data retention will shrink the valuable data pools used for micro-targeting
- Potential ripple effects: Other adtech companies must review their data practices
Meta generates approximately 10% of its global ad revenue from the EU, making this ruling particularly significant for its business operations.
Looking Ahead: Compliance Challenges
While the full implications remain unclear, companies must now:
- Establish clear data retention timelines
- Implement robust data deletion mechanisms
- Review all data processing activities for GDPR compliance
The ruling also has potential implications for AI development, as it reinforces the GDPR’s purpose limitation principle - potentially affecting how companies can repurpose user data for AI training.
This decision marks another milestone in the ongoing tension between big tech’s data-driven business models and EU privacy rights, setting new boundaries for digital advertising practices in Europe.
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