Meta Faces $411M Fine in 2025 as EU Bans Use of App Data for Targeted Ads
In 2025, EU regulators impose a $411 million fine on Meta, prohibiting the use of app-collected user data for personalized advertising, signaling a major shift in digital ad practices.
Major Ruling Threatens Core Revenue Model of Digital Advertising Giants
Highlights
- Meta was fined €390 million ($411 million) by Ireland’s data protection authority for breaching the EU's GDPR regulations.
- The decision mandates Meta to provide users with the option to opt out of personalized ads based on their app activity.
- Meta has announced plans to appeal the ruling, indicating a prolonged legal confrontation.
On Wednesday, the European Union’s data privacy regulator imposed a €390 million ($411 million) penalty on Meta, citing violations of the EU’s stringent privacy laws by targeting Facebook and Instagram users with ads derived from their online behavior.
Meta intends to challenge the ruling by the Ireland Data Protection Commission, which could disrupt the company’s established business framework. Should the courts uphold the decision, it would compel Meta and similar platforms to enable users to refuse ads tailored from their app interactions, potentially reshaping the digital advertising landscape.
The ruling followed directives from a board comprising all EU data protection authorities, instructing the Irish regulator to enforce this judgment. Meta contends that its user agreements authorize such advertising, but the company now has a three-month deadline to cease relying on these contracts as legal grounds.
Impact on Advertising Revenues
Meta and other tech platforms leverage user data gathered within their apps to deliver targeted advertisements. Industry analysts warn that widespread user opt-outs could slash Meta's ad revenue by up to 20%, highlighting the financial stakes involved.
This ruling adds to a series of challenges undermining Meta’s revenue generation. Since 2021, Apple’s introduction of privacy prompts on iPhones has led to decreased tracking, culminating in Meta’s first-ever quarterly revenue drop and a 64% plunge in its stock value last year.
Additionally, a recent class-action lawsuit in California accuses Meta of bypassing Apple's privacy measures by gathering data through embedded Facebook and Instagram browsers, allegations Meta denies.
The Ireland Data Protection Commission’s decision, based on Meta’s EU headquarters in Dublin, signals a lengthy legal dispute ahead. This follows a separate $275 million fine levied against Meta in November for a massive data breach exposing information of over 500 million Facebook users.
Looking forward, the EU Court of Justice is anticipated to deliver further rulings on Meta’s data collection practices later this year, potentially setting new precedents in digital privacy enforcement.
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