In a significant ruling, the European Union’s top court has declared that facebook’s parent company, Meta, cannot utilize personal data obtained from its own platforms or external sources for targeted advertising without adhering to strict limits and restrictions under the EU’s privacy laws. The Court of Justice of the European Union issued this ruling on October 4 in response to a lawsuit filed by Austrian activist Max Schrems, who has long advocated for stricter enforcement of the EU’s General Data Protection Regulation (GDPR). Schrems accused facebook of processing his sensitive personal data to serve him with targeted ads in violation of GDPR principles.
The court agreed with Schrems, stating that Meta’s data practices violated GDPR rules. According to the court, Meta aggregated and processed large amounts of user data for advertising purposes without appropriate time restrictions or limitations on the type of data involved. The judges emphasized that GDPR provisions prohibit controllers like online social network operators from aggregating, analyzing, and processing personal data obtained from users or third parties for targeted advertising without any time restrictions or distinctions regarding the type of data.
The court’s decision highlighted that even users who consented to personalized ads could not have their data processed indefinitely as Meta had been doing. Katharina Raabe-Stuppnig, Schrems’ lawyer, expressed satisfaction with the ruling and emphasized its broader implications for the online advertising industry. She noted that other companies operating without stringent data deletion practices would also be affected by this decision.
In response to the court’s ruling, Meta stated that it was reviewing the judgment while reaffirming its commitment to privacy. The tech giant has faced numerous legal and regulatory challenges in Europe in recent years and has been at the center of multiple investigations concerning compliance with GDPR regulations.
Beyond concerns about data privacy, EU authorities are also examining how digital platforms’ algorithms and system designs impact behavior. Meta’s recommender systems are currently under scrutiny due to potential concerns about fostering addictive behaviors among minors.
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