Meta, the parent company of Facebook, has been ordered by the European Union’s highest court to reduce the amount of personal data it uses for personalised advertising. This comes as a landmark ruling from the Court of Justice for the European Union (CJEU), in favour of privacy advocate Max Schrems, following complaints over Meta’s misuse of sensitive user data for targeted ads.
Privacy Campaign Sparks Legal Battle
Max Schrems, a prominent privacy campaigner, initiated the case after Facebook allegedly used personal data related to his sexual orientation to target ads. Schrems reported that despite not sharing information about his sexuality on the platform, he received ads aimed explicitly at gay individuals. His legal battle, first heard by Austrian courts in 2020, has culminated in a significant victory for privacy rights across the EU.
CJEU Ruling on Data Protection Law
In its ruling, the CJEU confirmed that Meta’s practice of using personal data for targeted advertising without clear distinctions regarding the type and sensitivity of data violates EU data protection regulations. The court stated, “An online social network such as Facebook cannot use all of the personal data obtained for targeted advertising purposes, without restriction as to time and without distinction as to type of data.”
According to EU data protection laws, information relating to sexual orientation, race, ethnicity, or health status is classified as sensitive and subject to strict processing limitations. Meta’s use of such data for personalised ads has been significantly restricted.
Meta’s Response to the Ruling
Meta has responded by stating that it does not use “special category” data, such as sexual orientation, for ad personalisation. A spokesperson for Meta said, “We take privacy very seriously and have invested more than five billion Euros to embed privacy at the heart of all of our products.” The company added that Facebook users can access various tools and settings to manage how their personal information is used.
Despite Meta’s assurances, the ruling represents a serious challenge to the company’s business model, which relies heavily on collecting large amounts of user data to generate targeted advertising revenue.
Legal and Business Implications
The decision is expected to have far-reaching consequences for how tech giants like Meta operate within the EU. Dr Maria Tzanou, a senior law lecturer at the University of Sheffield, noted that the judgment demonstrates that data protection principles are enforceable. “They do matter when big tech companies process personal data,” she said.
Will Richmond-Coggan, a legal expert from Freeths, remarked that while the ruling is not binding for UK courts, it signals potential challenges for Meta in other jurisdictions. He stated, “Meta has suffered a serious challenge to its preferred business model of collecting, aggregating, and leveraging substantial data troves in respect of as many individuals as possible, in order to produce rich insights and deep targeting of personalised advertising.”
Next Steps in the Case
Austria’s Supreme Court had referred questions regarding GDPR and Schrems’ complaint to the CJEU, which have now been addressed. It will be up to the Austrian court to determine if Schrems’ public reference to his sexual orientation gave Meta the right to use that data. However, the CJEU ruled that his reference did not authorise the processing of other personal data.
Max Schrems’ legal team expects the final ruling from the Austrian Supreme Court in the coming months. This ruling could set additional precedents for future data privacy cases involving tech companies like Meta.
This landmark ruling is a significant win for privacy advocates. It highlights the growing scrutiny of how tech companies handle personal data. As Meta faces increasing pressure to reform its data practices, this case could reshape the future of personalised advertising in the European Union.
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