Meta fined over $400 million by Irish regulator for targeted ads

Social media company Meta was fined €390 million ($414 million) on January 4 by Ireland’s Data Protection Commission (DPC). This decision pertains to Meta’s use of private user information for the personalisation of ads on its platforms – Facebook and Instagram.

The privacy regulator said that the company can’t use its contracts with its platform users to justify sending based on their online activities. The privacy regulator has given the company three months to comply.

This decision has been issued in the four-year investigation into Meta’s advertising. DPC acted on a complaint filed against Meta (then Facebook) in 2018, when the European Union rolled out the General Data Protection Regulation (GDPR). As per the complaint, to comply with GDPR, Facebook and Instagram would ask users to give consent to terms on how their data would be used in ads; failure to accept these terms meant that users couldn’t use the platforms. The case argued that Meta was forcing them to give consent, hence breaching GDPR.

In response to DPC’s latest decision, Meta issued a statement saying that their approach respects GDPR and that the company is “disappointed by these decisions and intend to appeal both the substance of the rulings and the fines.” Meta’s statement cited lack of regulatory clarity on the issue. “That’s why we strongly disagree with the DPC’s final decision and believe we fully comply with GDPR by relying on Contractual Necessity for behavioral ads given the nature of our services. As a result, we will appeal the substance of the decision.”

Meta said that the decision by DPC related only to the legal basis that Meta uses while offering certain advertising. Meaning, the ruling doesn’t prevent personalised ads on the platform. Meta further said that the decision does not mandate the use of consent, as per available legal basis under GDPR. “The suggestion that personalised ads can no longer be offered by Meta across Europe unless each user’s agreement has first been sought is incorrect,” the company said.