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News + Trends

Facebook and Instagram: In future you will be able to reject personalised advertising

Samuel Buchmann
2.8.2023
Translation: machine translated

After a long tug-of-war in court, Meta promises to no longer automatically sell usage data from Europe to third-party companies.

This means that the parent company of Facebook and Instagram is giving in after years of legal disputes with the European data protection authorities. Until now, the eat-or-die principle has applied on social media platforms: anyone who logs in automatically accepts that Meta can record their usage behaviour and sell it to third-party companies. This allows them to place targeted, personalised advertising.

Impact on advertising revenue

The new opt-in practice is likely to be a major blow to Meta's advertising revenue in the EU. It goes in the same direction as Apple's "App Tracking Transparency", which allows iPhone users to prevent cross-app tracking. When the function was introduced two years ago, over 80 per cent rejected tracking. This cost Meta at least 10 billion worldwide and led to a slump in its share price.

In its blog post, Meta therefore tries to reassure advertisers and investors: "There is no immediate impact on our services in the region. Once this change is in place, advertisers will continue to be able to run personalised advertising campaigns to reach potential customers and grow their business." The change has already been factored into business forecasts.

Cover image: Shutterstock

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