EU’s Top Court Rules Against Meta’s Data Retention For Ad Targeting

eu’s-top-court-rules-against-meta’s-data-retention-for-ad-targeting
EU’s Top Court Rules Against Meta’s Data Retention For Ad Targeting

Meta’s Facebook can no longer retain user data for long periods. The news comes after a top court in the EU ruled against the company’s ad targeting practices.

The decision came on Friday when it was revealed that leading social networks including Facebook have been engaged in the activity for too long. This can have serious consequences for Meta and the way it targets users for ads in the region.

Restrictions on how long personal data will be stored were announced to ensure minimal data collection as per the GDPR. Similarly, any organization that chooses to breach the regime will now be penalized. Fines issued can go up to 4% of the company’s global yearly turnover.

When it comes down to Meta, the amount could mean billions are at stake in the form of penalties. As it is, the tech giant is already at the top of the scoreboard in terms of GDPR breaches.

The latest CJEU ruling arrives after an earlier case as published by the court in April. This highlighted the importance of limits on data stored for ad targeting purposes. When Meta was recently asked to comment on the matter, the company’s spokesperson said they are waiting for the complete judgment to come out.

Facebook’s parent company is waiting for the final court judgment in print, after which they plan to share their insights on the matter. 

The company highlighted how it takes its privacy so seriously. Over time, it has invested billions of Euros to make sure all products remain safe for users. Similarly, the company mentioned how users are always welcome to adjust privacy settings and how their data is used on Meta’s apps.

The reason why this issue is concerning for Meta is that the company makes big revenue through ad tech. Through tracking and profiling, they collect data all over the internet. This can be through cookies, plug-ins, and more. The goal is to enhance sales for small advertising services. Hence, any law that hinders this business will drastically impact Meta and similar tech giants making revenue in this way.

Image: DIW-Aigen

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