EU Rules Mean Meta Will Have To Change Advertising Tactics

Do you ever feel like the commercials you see online are specifically targeted toward your interests and search activity? Plenty of sites utilize targeted advertising to increase the chances that you'll buy something through them. However, just because they do this, that doesn't mean they're always allowed to.

It seems that Meta, the home of Facebook, has recently come under fire after appearing to breach EU rules with these tactics. Their actions have landed them a fine and the possibility that they may need to adjust their advertising model overseas. However, are Meta willing to accept this, or will they refuse to change without putting up a fight first?

Meta was fined over $400 million for allegedly violating GDPR

If you were to be fined 390 million euros (approximately $411 million,) it would probably ruin you. For someone like Mark Zuckerberg, who's worth billions, though, this amount of cash might be seen as more of an inconvenience. Still, that doesn't mean he's likely to be happy about Ireland's privacy regulator sending a bill for this much money his way. According to them, his company - Meta - has violated the EU's General Data Protection Regulation (GDPR,) and breaking the law comes with a price. It's all down to the targeted advertisements that people on Facebook and Instagram receive based on their online actions.

Meta may have to allow users to opt-out of targeted ads

This ruling by Ireland's privacy regulator is a significant one, given the repercussions that it could have on Meta's revenue stream. Following the announcement, Meta announced plans to appeal the decision in the hopes of ultimately emerging victorious. However, there is no guarantee that an appeal will work in their favor. If it doesn't, the company may be forced to give its users the opportunity to opt-out of targeted ads. Analysts predict that a move like this won’t be too kind to the way that Meta makes its money.

Advertising revenue could potentially plummet by 20% if the ruling sticks

Apparently, if users were given the opportunity to opt-out of targeted ads, Meta could see its advertising revenue fall by up to 20%. That would have a huge impact on the company, meaning a change to their advertising will be essential. It will also need to be employed quickly to reduce the damage that this drop in revenue could cause. Considering that advertising sales make up the primary source of Meta’s revenue, they can’t afford to do nothing about this.

Apple’s move to allow people to opt-out of data tracking has hurt Meta

Meta has already struggled in recent years thanks to Apple asking iPhone users if they wish to stop apps from tracking their online activity. After this option went live, the company saw its first-ever quarterly revenue decline, with stocks dropping 64%. To make matters worse, a class action lawsuit is claiming that Meta has tried to circumvent people opting out on iPhones by collecting data through its built-in browsers. The company denied any wrongdoing, stating that the allegations were “without merit.” They claimed that the in-app browsers were designed to “respect users’ privacy choices.”

Ireland previously fined Meta several months earlier due to a data leak

Things haven't always been smooth sailing for Facebook and Meta. However, times appear to be particularly turbulent at the moment, with this ruling not the first time that the company has been fined by Ireland. It was only last year that the company was fined $275 million after a data leak resulted in the publishing of over 500 million people's personal information. The reason that Meta seems to keep getting on the wrong side of Ireland is that the company's EU headquarters are based in Dublin. With two fines coming in such short succession, we have to wonder how soon it will be before Ireland fires another shot at the social media giant.

Meta is also facing a lawsuit from US schools regarding its impact on mental health

It's not just in the EU that Meta appears to be having issues. In the US, schools have apparently decided to sue the company - along with other tech giants - for their part in the "youth mental health crisis." According to Seattle Public Schools, companies like Meta direct harmful content to millions of young people across the nation with the interest of boosting their profits. They also say there's been a 30% increase in depression among their students across a ten-year period, with social media reportedly to blame. They're seeking to get Meta, Google, and the like to pay for education and treatment to help those struggling with the "problematic use of social media."

With Meta not having the best time right now, it's probably hoping for some good news. However, it should perhaps be wary about an appeal against this latest ruling working out in its favor. Instead, those responsible for the company's advertising tactics should probably spend their time coming up with a new way to make money. That way, they can soften the blow that may soon come their way.