New European Union (EU) regulations put Meta’s advertising revenue on its social networks, Instagram and Facebook , at risk, after approving a new regulation on user privacy. And it is that, from now on, you can no longer require your users to accept personalized ads.
Although, it will not only affect these two Meta social networks, but it is also aimed at privacy in WhatsApp and other applications. In any case, it has been the European Data Protection Board that has met to discuss this possible decision that will force Meta to offer more alternatives, and above all, greater ease, so that its users can restrict the access to your data.
Hard blow to Goal
If at the end of October we saw how Meta, better known as Facebook, sank on the stock market and lost nearly 700,000 million in a single year, now the company’s advertising revenue may be in checkmate. Or, at least, its current volume. More than anything, because the European Committee for Data Protection (EDPB), could put an end to the personalized ads that we see today on Facebook and Instagram.
Keep in mind that the Meta model is primarily based on advertising. Therefore, if we look at the results of 2021, we can see how the company came to earn more than 110,000 million dollars thanks to the sale of ads . Neither more nor less than it accounts for almost 98% of their income. That is why it could be a hard blow for the company led by Mark Zuckerberg.
However, the EU already restricts the personalization of ads on social networks, in this case Facebook or Instagram. However, the decision to further restrict advertising puts Meta at even greater risk, which has seen its shares plummet by 6.8% in the last few hours.
The final judgment is missing
However, the final decision that will have to be published by the Irish Data Protection Commission (CPD) is still missing. More than anything, because it is in Ireland where Meta has the official European headquarters. Therefore, we still have to wait to see if the order with which users will have total freedom to completely restrict targeted ads is finally applied.
This final sentence must be issued within a month, as reported by Reuters. In any case, the EU is clear: Meta should not require users to accept personalized ads. If fulfilled, the situation of the platform would be further complicated. It must be remembered that he has already faced different fines , with values that have reached up to 405 million euros , for the configuration of children’s privacy on Instagram or 265 million euros for not having adequate data backup protections.
