Meta Platforms:Regulatory Environment: Difference between revisions

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 === November, 2023 ===
 November 28, 2023: Advocacy group None Of Your Business (NOYB) has filed a complaint with the Austrian regulator against Meta's ads-free subscription model arguing that it amounts to paying a fee to ensure privacy. "EU law requires that consent is the genuine free will of the user. Contrary to this law, Meta charges a 'privacy fee' of up to 250 euros per year if anyone dares to exercise their fundamental right to data protection," NOYB data protection lawyer Felix Mikolasch said in a statement. "Not only is the cost unacceptable, but industry numbers suggest that only 3 percent of people want to be tracked – while more than 99 percent don't exercise their choice when faced with a 'privacy fee,'" the group said. "If Meta gets away with this, competitors will soon follow in its footsteps." The complaint is expected to be forwarded to the Irish Data Protection Commission which oversees Meta<ref>https://finance.yahoo.com/news/exclusive-meta-platforms-paid-ad-060913495.html</ref>.
+November 27, 2023: A U.S. federal judge ruled against Meta Platforms in a privacy dispute with the FTC. Meta Platforms wanted the District Court to take over its dispute with the FTC. In May, the FTC accused Meta of misleading parents on how much control they have over their kids' usage of the Messenger Kids app and proposed to tighten the $5 billion settlement it reached with the company in 2019 to prevent Meta from making money off data it collects from the underage users, including from the virtual reality business. The ruling grants the FTC the right to implement the proposed changes. "We are considering our legal options in light of the Court's ruling and will continue to vigorously fight the FTC's unlawful attempt unilaterally to rewrite our agreement," Meta Platforms spokesman said. The FTC declined to comment<ref>https://finance.yahoo.com/news/1-us-federal-judge-rules-212317527.html</ref>.
 === October, 2023 ===
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 September 5, 2023: Meta lost a Norwegian appeal case that sought to stop a fine of $93,200 per day starting from August 4 for collecting user data and using it in its targetted advertising. The daily fine is to run for 3 months. The ruling could have wider implications in Europe as Datatilsynet, Norwey's data regulator, plans to refer it to the EU data regulator. "We are disappointed by today's decision and will now consider our next steps," a Meta spokesperson told Reuters<ref>https://finance.yahoo.com/news/norway-court-rules-against-facebook-093639467.html</ref>.
-September 5, 2023: Meta Platforms among those designated as "gatekeepers" of online services by the EU commission. Under the European Union’s Digital Markets Act (DMA), companies with more than 75 billion euros in market capitalization and 45 million monthly active users are considered as "gatekeepers". Companies labelled as such will be required to make their messaging apps interoperate with that of rivals and allow users to decide which apps to pre-install on their devices. A fine of up to 10% of annual global turnover will be imposed on any company that violates the DMA Act. The penalty can go up to 20% for repeated infringement. The "gatekeepers" will have six months to comply with the DMA obligations<ref>https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4328</ref>.
+September 5, 2023: Meta Platforms among those designated as "gatekeepers" of online services by the EU Commission. Under the European Union’s Digital Markets Act (DMA), companies with more than 75 billion euros in market capitalization and 45 million monthly active users are considered as "gatekeepers". Companies labelled as such will be required to make their messaging apps interoperate with that of rivals and allow users to decide which apps to pre-install on their devices. A fine of up to 10% of annual global turnover will be imposed on any company that violates the DMA Act. The penalty can go up to 20% for repeated infringement. The "gatekeepers" will have six months to comply with the DMA obligations<ref>https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4328</ref>.
 September 1, 2023: Meta is considering a paid version of Facebook and Instagram with no ads in Europe to combat privacy regulations, that's according to the New York Times. However, it doesn't plan to get rid of the free version of Facebook and Instagram. The New York Times did not indicate how much the new version will cost. Meta has not responded to a request for a comment<ref>https://finance.yahoo.com/news/1-meta-may-allow-facebook-174004127.html</ref>.
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 August 29, 2023: According to data from Similarweb and Data.ai, the decision by Meta to block news links in Canada has had no impact on Facebook's daily active users as well as time spent on the app. This supports Meta's assumption that news adds little value to the company. Meta had said that less than 3% of its Facebook Feeds come from news. Meta declined to comment on the data<ref>https://finance.yahoo.com/news/exclusive-metas-canada-news-ban-101134650.html</ref>.
-August 1, 2023: Meta has said that it will seek user consent before allowing businesses to send targeted ads to them. "Today, we are announcing our intention to change the legal basis that we use to process certain data for behavioural advertising for people in the EU, EEA (European Economic Area) and Switzerland from 'Legitimate Interests' to 'Consent'," Meta said in a blog post. The company noted that the change will not result in an immediate impact on its services in the region and that they factored it into its business outlook. "There is no immediate impact to our services in the region. Once this change is in place, advertisers will still be able to run personalised advertising campaigns to reach potential customers and grow their businesses. We have factored this change into our business outlook," it said. It added that it will share more information on how the process will work in practice in the coming months as it engages with the regulator<ref>https://about.fb.com/news/2023/01/how-meta-uses-legal-bases-for-processing-ads-in-the-eu/</ref>.
+August 1, 2023: Meta has said that it will seek user consent before allowing businesses to send targeted ads to them. "Today, we are announcing our intention to change the legal basis that we use to process certain data for behavioural advertising for people in the EU, EEA (European Economic Area) and Switzerland from 'Legitimate Interests' to 'Consent'," Meta said in a blog post. The company noted that the change will not result in an immediate impact on its services in the region and that it factored it into its business outlook. "There is no immediate impact to our services in the region. Once this change is in place, advertisers will still be able to run personalised advertising campaigns to reach potential customers and grow their businesses. We have factored this change into our business outlook," it said. It added that it will share more information on how the process will work in practice in the coming months as it engages with the regulator<ref>https://about.fb.com/news/2023/01/how-meta-uses-legal-bases-for-processing-ads-in-the-eu/</ref>.
 === July, 2023 ===
 July 17, 2023: Norway's data protection authority, Datatilsynet, said it will fine Meta $100,000 per day over data breaches unless it takes action aimed at resolving them. The regulator said the fine will start from Aug. 4 and will run until Nov. 3 unless action is taken by Meta. Datatilsynet said Meta can not collect user information such as physical address and use it for targeted advertising. "It is so clear that this is illegal that we need to intervene now and immediately. We cannot wait any longer," the head of Datatilsynet's international section, Tobias Judin told Reuters. Meta said it will review the decision while adding that no immediate impact on its services is expected. The company noted, "We continue to constructively engage with the Irish DPC, our lead regulator in the EU, regarding our compliance with its decision." "The debate around legal bases has been ongoing for some time and businesses continue to face a lack of regulatory certainty in this area." Norway is not a member of the EU but is part of the European single market<ref>https://finance.yahoo.com/news/norway-regulator-fine-meta-over-085000683.html</ref>.
-July 10, 2023: The EU and the US have signed a new transatlantic deal that will allow the transfer of user data to the U.S, without causing any safety concerns. “Personal data can now flow freely and safely from the European Economic Area to the United States without any further conditions or authorizations,” EU Justice Commissioner Didier Reynders said at a press briefing in Brussels. However, the European privacy campaigner responsible for the legal challenges over the trans-Atlantic data transfer has dismissed the deal. Max Schrems said he will challenge the latest deal in an EU top court. The transatlantic deal created concerns for tech giants such as Meta. During the latest earnings, Meta warned that if an agreement on the trans-Atlantic EU-US data transfer doesn't materialize, it will be forced to stop offering its services in Europe<ref>https://finance.yahoo.com/news/europe-signs-off-privacy-pact-160703083.html</ref>. Roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in EU countries<ref>https://www.investmentwiki.org/wiki/Meta_Platforms#:~:text=May%2022%2C%202023,%5B39%5D.</ref>.
+July 10, 2023: The EU and the US have signed a new transatlantic deal that will allow the transfer of user data to the U.S., without causing any safety concerns. “Personal data can now flow freely and safely from the European Economic Area to the United States without any further conditions or authorizations,” EU Justice Commissioner Didier Reynders said at a press briefing in Brussels. However, the European privacy campaigner responsible for the legal challenges over the trans-Atlantic data transfer has dismissed the deal. Max Schrems said he will challenge the latest deal in an EU top court. The transatlantic deal created concerns for tech giants such as Meta. During the latest earnings, Meta warned that if an agreement on the trans-Atlantic EU-US data transfer doesn't materialize, it will be forced to stop offering its services in Europe<ref>https://finance.yahoo.com/news/europe-signs-off-privacy-pact-160703083.html</ref>. Roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in EU countries<ref>https://www.investmentwiki.org/wiki/Meta_Platforms#:~:text=May%2022%2C%202023,%5B39%5D.</ref>.
 July 4, 2023: An EU Court of Justice has ruled that Meta must get user consent before sending personalized ads in certain circumstances. Unlike the recent decision by an Ireland court that fined Meta Platforms $425 million and ruled that the company can't use its contracts to justify sending users personalized ads, today's ruling is not appealable. Meta Platforms started using an EU privacy law provision which cites the “legitimate interest” of its business after the former ruling. It also came up with forms which users can use to opt out of the personalized ads. However, the new ruling has stated that the user's interest overrides the firm's " legitimate interest". It further stated that users must give consent freely instead of having to click "yes" to access a service. As such, the ruling will compel the likes of Facebook to ask users to opt into ads that are of interest to them. It also gives the Ireland court a reason to quash the appeal that Meta is making regarding the former ruling. Meta spokesperson said that the company is evaluating the court's ruling and that it will comment further in due course<ref>https://www.wsj.com/articles/metas-facebook-needs-consent-to-personalize-ads-eu-court-rules-6c705f18?siteid=yhoof2</ref>.
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 June 2, 2023: Meta tests blocking Canadian users from accessing news content on Instagram and Facebook. The block is in response to a proposed bill that will require tech giants to pay publishers for reporting the content online. The Online News Act is being discussed in the Senate and could be passed this month. Meta said it's ready to permanently block news content for Canadian Facebook and Instagram users if the bill is passed. The temporary block will affect 1-5% of its 24 million Canadian users<ref>https://finance.yahoo.com/news/meta-tests-blocking-news-content-025737021.html</ref>.
-May 26, 2023: To avoid further UK antitrust woes, Meta has given assurances on how it uses ad data to boost its Facebook Marketplace, which include;
+May 26, 2023: To avoid further UK antitrust woes, Meta has given assurances on how it uses ad data to boost its Facebook Marketplace, which includes;
 (a) Enabling advertisers to opt out of their advertising data which is used to develop the marketplace.
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 === May, 2023 ===
-May 22, 2023: Irish Data Protection Commission announced that it has fined Meta platforms €1.2 billion ($1.3 billion)  for transferring user data to the U.S., where it will be exposed to the prying eyes of the American security services. The commission has also asked Meta Platforms to stop " any future transfer of user data to the U.S." within 5 months. Additionally, Meta Platforms has been asked to stop “the unlawful processing, including storage, in the US” of such data within 6 months. The ban was widely expected though its impact has been reduced by the transition phases included in the decision as well as the possibility of a new EU-US data flows agreement that could be operational by June of this year<ref>https://www.bloomberg.com/news/articles/2023-05-22/meta-fined-record-1-3-billion-in-eu-over-us-data-transfers</ref>. This ruling applies only to Facebook and not WhatsApp or Instagram but the decision could force Meta to delete vast amounts of EU user data. Meta said they will appeal the decision and that no immediate disruption to Facebook services in the EU is expected<ref>https://www.nytimes.com/2023/05/22/business/meta-facebook-eu-privacy-fine.html</ref>.  The company said during the latest earnings call that " roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in EU countries."<ref>https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#:~:text=Regulatory%20Environmennt%5Bedit,suspension%5B13%5D</ref> It also warned last year that if a new transatlantic data transfer framework doesn't materialize, it will be forced to pull its Facebook and Instagram services from the EU<ref>https://www.bloomberg.com/news/articles/2022-07-29/meta-repeats-threat-it-may-pull-facebook-instagram-from-europe</ref>.
+May 22, 2023: The Irish Data Protection Commission announced that it has fined Meta platforms €1.2 billion ($1.3 billion)  for transferring user data to the U.S., where it will be exposed to the prying eyes of the American security services. The commission has also asked Meta Platforms to stop " any future transfer of user data to the U.S." within 5 months. Additionally, Meta Platforms has been asked to stop “the unlawful processing, including storage, in the US” of such data within 6 months. The ban was widely expected though its impact has been reduced by the transition phases included in the decision as well as the possibility of a new EU-US data flows agreement that could be operational by June of this year<ref>https://www.bloomberg.com/news/articles/2023-05-22/meta-fined-record-1-3-billion-in-eu-over-us-data-transfers</ref>. This ruling applies only to Facebook and not WhatsApp or Instagram but the decision could force Meta to delete vast amounts of EU user data. Meta said they will appeal the decision and that no immediate disruption to Facebook services in the EU is expected<ref>https://www.nytimes.com/2023/05/22/business/meta-facebook-eu-privacy-fine.html</ref>.  The company said during the latest earnings call that " roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in EU countries."<ref>https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#:~:text=Regulatory%20Environmennt%5Bedit,suspension%5B13%5D</ref> It also warned last year that if a new transatlantic data transfer framework doesn't materialize, it will be forced to pull its Facebook and Instagram services from the EU<ref>https://www.bloomberg.com/news/articles/2022-07-29/meta-repeats-threat-it-may-pull-facebook-instagram-from-europe</ref>.
 == References ==