The economic model of the American giant Goalowner of Facebookis facing a tough test in the European Union (EU), after being sanctioned with a new multi-million dollar fine from the Irish regulator.
Meta is in the European viewer for its controversial handling of its users’ personal data, and the way in which that is used for personalized advertising.
The Irish personal data regulator fined Meta twice on Wednesday, amounting to 390 million euros (about $410 million at current exchange rates).
WATCH THIS: Harvard Business Review: Meeting overload is a solvable problem
The Irish Data Protection Commission (DPC) stated that Meta breached “its obligations of transparency” and used the wrong legal basis “for your processing of personal data for advertising purposes” personalized.
that decision “It could represent a hard blow for Meta”, anticipates Dan Ives, an analyst at the US investment firm Wedbush Securities, who estimates that the group could lose between 5% and 7% of its business volume in the medium term.
Meta announced that it will appeal the sanctions, which leaves a margin “to delay deadlines” while evaluating the course to take, adds this expert.
Europe represents a key market for Meta.
Facebook had 303 million daily active users in Europe in the third quarter of 2022, compared with 197 million in the US/Canada area, out of a total of 2 billion worldwide.
The European market represented around 21% of Meta’s advertising turnover in the same period (47% for the United States/Canada area), according to its financial accounts.
According to the lawyers, the Irish regulator’s decision theoretically obliges the American giant to ask its European users for their specific authorization to offer them personalized advertising.
Personalized advertising, theoretically selected based on the user’s tastes, has been a key element of the big players on the Internet and social networks for years.
Non-selective advertising means less money for companies.
“There is no other possible solution than to ask for consent” Internet users, explains Paul-Olivier Gibert, president of the French Association of Personal Data Controllers.
The lawyer Sonia Cissé, from the Linklater cabinet, believes for her part that the Irish decision “does not question economic models” based on personalized advertising, as is the case of Meta.
READ ALSO: Contact centers: more foreign companies would come to invest in the Peruvian market
“But it regulates and limits them, clearly”insists.
To prompt users to give their consent to consent“companies should sharpen their ingenuity”, predicts this expert.
irish benevolence
Meta can at least count on some Irish benevolence. The agency acknowledged that it only sanctioned the group after receiving pressure from its European counterparts, meeting in the European Committee for Data Protection.
The DPC at the same time refused to open an investigation into the data set collected by Facebook and Meta, as claimed by their European counterparts.
“At the moment there are many sanctions against American companies”highlights a lawyer specializing in claims related to personal data, under anonymity.
“European regulatory authorities are very vigilant about protecting the interest of users” of the platforms but “sometimes I wonder if it is not a way to privilege European companies”Add.
“Users like to be offered free services that, for the moment, European companies have not been able to provide” highlights.
Source: AFP
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
