European Data Regulators Ban Behavior Ads On Facebook And Instagram For All EU And EAE Regions

Tobias Judin, head of the international section of Datatilsynet, (photo: twitter @finnmyrstad)

European data regulators have approved the expansion of the ban imposed by Norway, a non-EU-member country, on "advertising behavior" on Facebook and Instagram. The ban will apply to cover all 30 countries in the European Union and the European Economic Territory. The decision was announced on Wednesday, November 1.

The ban on such ads, which target users by collecting their data, is a setback for Meta Platforms Inc., the US tech giant who owns both social media services. Meta has previously opposed efforts to limit the practice.

According to Norwegian data regulators, Meta faces a risk of being fined up to 4% of its global turnover if it violates the ban.

The decision by the European Data Protection Council (EDPB) is an instruction to Irish data regulators, where Meta's headquarters is located in Europe, to impose a permanent ban on the use of advertisements for the company's behavior within two weeks.

"On October 27, EDPB adopted an urgent binding decision... to impose a ban on the processing of personal data for behavioral advertisements based on the legal basis of contracts and legal interests throughout the European Economic Territory," the EDPB statement said.

Meta on Wednesday said it had promised to give users in the EU and the EAE the opportunity to grant permission, and would offer a subscription model in November to comply with regulatory requirements.

"Members of EDPB have been aware of this plan for weeks and we have fully communicated with them to achieve satisfactory results for all parties," the company spokesman said. "This development is unfair and ignores the careful and robust regulatory process."

Since August 7, Meta has been fined daily in Norway for 1 million (Rp 1.5 billion) for violating user privacy by using their data, such as location or browsing behavior, for advertising. This is a business model common among big tech companies.

Norway's data regulator, Datatilsynet, said in September that it had referred the continued fine to European regulators, as the fine only applies in Norway.

According to Tobias Judin, head of the international section of Datatilsynet, the fine will expire on November 3, but Meta is at risk of facing much tougher financial sanctions.

"Because we will now receive a permanent ban, the widespread violation of the EU/EEA ban itself will be a GDPR violation, which can be fined up to 4% of global turnover," Judin said. GDPR, or General Data Protection Regulation, is an EU rule on information privacy.

Norway is not a member of the EU but is part of the European singles market. According to Datatilsynet, this decision affects around 250 million Facebook and Instagram users in Europe.