EU privacy watchdog tells Meta it cannot run ads based on personal data

European Union privacy regulators have ruled that Meta Platforms Inc. should not require users to agree to personalized ads based on their platform activity, according to people familiar with the decision.

The ruling could curtail the data that Meta can access to sell such ads.

A board representing all EU privacy regulators approved a series of decisions ruling the EU privacy law does not allow Meta platforms and its subsidiaries to use their terms of service as a justification for allowing such advertising, the sources said.

The new EU decisions can be appealed, which could lead to them being suspended pending potentially lengthy litigation. Though is upheld, they could make it harder for Meta and other platforms to show users ads based on what they tap and watch within those firms’ apps.

Meta has for years allowed users to opt-out of personalized ads based on data from other websites and apps. But it has not given any such option for ads based on data about user activity on its platforms — such as which videos a Facebook user watches.

The board’s rulings haven’t yet been disclosed publicly. They don’t directly order Meta to change practices, but rather call for Ireland’s Data Protection Commission to issue public orders that reflect its decisions, along with significant fines, the sources added.