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Meta Platforms: Difference between revisions
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== Regulatory Environment == | == Regulatory Environment == | ||
July 10, 2023: The EU and US have signed a new transatlantic deal that will allow transfer of user data to 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 responisble for the legal challenges over the | July 10, 2023: The EU and US have signed a new transatlantic deal that will allow transfer of user data to 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 responisble for the legal challenges over the transatlantic 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 call, Meta warned that if an agreement on the transatlantic EU-US data transfer doen'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 Platfroms $425 million and ruled that the company can't use its contracts to justify sending users personalized ads, today's rulling 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 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 in to 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>. | 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 Platfroms $425 million and ruled that the company can't use its contracts to justify sending users personalized ads, today's rulling 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 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 in to 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>. | ||