Social media giant Meta Changes Rules for EU users for better data usage. It is one of the significant moves that Meta has taken this year.
According to Meta, this change would give EU users more control over how their data is used. However, it is unlikely to affect the successful targeted advertising business the company has in the European Union.
On Thursday, the company took to its official site and announced that it would change the legal basis on which Facebook and Instagram utilize personal data to target advertising within the European Union.
The reason behind this significant move is the fine of 390 million euros that was imposed on Meta.
According to reports, in January 2023, the European Union’s privacy authority penalized Meta Platforms Inc. (META.O) for alleged privacy violations.
At the beginning of this year, the Data Privacy Commissioner of Ireland handed the social media giant a fine of 390 million euros, which is equivalent to $425.72 million. The Data Privacy Commissioner also informed the company that it could not use the so-called “contract” legal basis to send users advertisements based on their online activity.
Meta, which had previously stated that it planned to challenge both the content of the judgments and the fines that were issued, is now planning to employ the “Legitimate Interests” basis instead of the “Contractual Need” basis to comply with the General Data Protection Regulation of the EU (GDPR).
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The “Legitimate Interests” basis of the GDPR permits businesses to utilize customers’ private information in ways that people would anticipate, while the “Contractual Basis” of the GDPR permits businesses to gather information when such data is required for the fulfillment of a contract. This allows companies to collect data when the information is necessary to execute a contract.
Meta took to its official site to announce that it is appealing both judgments’ contents as well as the fines that were imposed on it.
In a blog post, the company stated that they are still appealing both the judgments’ contents and the fines imposed on them. They wrote, “We feel that our previous strategy was compliant under GDPR.”
With the latest rules, Meta plans to offer a version of its services that would only target users with advertisements based on broad categories. This would allow European users of Instagram and Facebook to opt out of certain highly personalized ads. Meta would then offer a version of its services that would only target them with advertisements based on broad categories.
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