EU Court Rules Meta Must Limit Use of Personal Data for Targeted Advertising
Eddie Bingham | Technology News | 04th October 2024
The Court of Justice of the European Union (CJEU) has mandated that Meta, the parent company of Facebook, must significantly reduce the use of individuals' personal data for personalized advertising. This ruling comes in response to privacy advocate Max Schrems, who raised concerns about the misuse of his personal information related to his sexual orientation for targeted ads.
In a case initiated in Austria in 2020, Schrems alleged that he was subjected to ads aimed at the LGBTQ+ community, despite never disclosing his sexual orientation on Facebook. The CJEU's decision, announced on Friday, clarified that data protection laws do not grant companies unrestricted access to use personal data for advertising purposes.
The court stated, "An online social network like Facebook cannot utilize all personal data obtained for targeted advertising without temporal restrictions or differentiation regarding the type of data." Sensitive data, which includes information about sexual orientation, race, ethnicity, or health status, is subject to stringent processing requirements under EU data protection regulations.
Meta has asserted that it does not use what is termed "special category data" for advertising personalization. In a statement following the court's summary of the ruling, a spokesperson for Meta said, "We await the publication of the Court’s judgment and will have more to share in due course." They emphasized the company's commitment to privacy, highlighting an investment of over five billion euros to integrate privacy into their product design.
Katharina Raabe-Stuppnig, a lawyer representing Schrems, expressed satisfaction with the ruling, noting that it was anticipated. She explained that this decision limits the amount of Meta's data that can be utilized for advertising, even if users consent.
Significant Implications for Big Tech
Legal experts have pointed out that this ruling has substantial ramifications for Meta's business model, which relies on collecting vast amounts of data for advertising purposes. Dr. Maria Tzanou, a senior lecturer in law at the University of Sheffield, remarked that the ruling demonstrates that data protection principles are effective when big tech companies handle personal data.
Will Richmond-Coggan, a partner at law firm Freeths, emphasized the potential global impact of this decision, indicating that Meta could encounter similar challenges in other jurisdictions based on comparable legal principles, including those in UK law.
The case began when Austria's Supreme Court sought clarification on how the General Data Protection Regulation (GDPR) applied to Schrems' complaint, leading to the EU's top court's involvement in 2021. The court examined whether Schrems' public references to his sexuality implied consent for companies to process this data for targeted ads. The CJEU concluded that while the Austrian court will determine if he made this information "manifestly public," his acknowledgment of his sexual orientation does not grant authorization for the processing of any other personal data.
Schrems' legal team has stated that the Austrian Supreme Court is required to abide by the CJEU's ruling, and they anticipate a final judgement in the coming weeks or months. This isn't the first time Schrems has challenged Meta in court over its handling of EU user data.
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