Facebook and Instagram's parent company Meta this week was handed down a combined €400mn in fines in regards to breaching EU privacy rules. As widely reported, this action may influence how advertising across Meta's platforms leverages user data.
The rulings regard Meta's approach to gaining permission from users for the data created whilst on their platforms to be processed for use of targeted advertising. Ireland's Data Protection Commission which is enforcing the EUs privacy rules found that Meta was effectively 'forcing' users to accept these conditions.
Meta said it would appeal against the ruling and that its approach was in line with privacy rules in Europe. “We strongly believe our approach respects GDPR, and we’re therefore disappointed by these decisions and intend to appeal both the substance of the rulings and the fines.”
Meta added: “These decisions do not prevent targeted or personalised advertising on our platform. The decisions relate only to which legal basis Meta uses when offering certain advertising. Advertisers can continue to use our platforms to reach potential customers, grow their business and create new markets.”
Whether or not these fines are upheld these actions further bring into focus the increasing value of a brand's own 1st party data within the advertising eco-system.
Should the availability of behavioural signals, which Meta harvests from user data across the likes of Facebook & Instagram, become compromised the methods for creating interest based segments and look-a-likes from Meta's data will be negatively impacted. Such a shift would only prompt advertisers and the wider industry to look at leveraging brands own consented 1st party data for use in audience generation further.
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