THE company behind Facebook, Instagram and WhatsApp has been fined an eyewatering $414million (£347million) for breaking EU data rules.
It could mean that Facebook and Instagram users will see fewer targeted ads in the future.
The ruling by the Irish Data Protection Commission (DPC) on Wednesday gives Facebook parent company Meta a deadline to stop relying on user contracts to justify the use of behavioural ads.
Meta now has three months to find a new justification or stop using the ads - which are based on tracking a user’s online activity.
Mark Zuckerberg's tech group had previously said such ads are necessary to execute contracts with users – which violated EU privacy law.
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The decisions by the Irish watchdog - one for Facebook and one for Instagram - could end up limiting the tech giant’s ability to use some of the data it collects from users of apps such as Facebook and Instagram.
While Meta hasn’t specifically been ordered to get users’ consent to use their activity data before plastering targeted ads on their feeds, the company said it is planning on appealing the ruling.
Meta said it disagrees with the ruling and plans to appeal both it and the fines.
The company said it rejects the idea that it must seek users’ consent as a legal justification under EU law.
“We strongly believe our approach respects GDPR, and we’re therefore disappointed by these decisions,” a spokesperson said.
The whopping fine brings Meta’s total fines by the watchdog to more than $1.2billion (£1billion) in the past 18 months.
If Meta’s appeal is successful, the legal row could take several years.
Facebook and Instagram users are yet to be impacted.
But if the litigation falls in favour of the EU, Meta’s social media users will be able to opt out of ads that are based on tracking activity on its own apps.
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