Meta
Meta, the owner of Facebook, must reduce the amount of personal data it uses for targeted advertising, according to a ruling from the Court of Justice of the European Union (CJEU). The court’s decision comes in response to a complaint filed by privacy advocate Max Schrems, who accused Facebook of using his personal data related to his sexual orientation for personalized ads without his consent.
Schrems had initially taken the issue to Austrian courts in 2020, claiming that Facebook targeted him with ads aimed at gay users, despite him never disclosing his sexual orientation on the platform. On Friday, the CJEU ruled that European data protection laws do not grant Meta the right to use such sensitive information for personalized ads without clear restrictions.
The court emphasized that platforms like Facebook cannot use all personal data for targeted advertising without limitations on time or type of data. It specifically noted that data concerning sexual orientation, race, ethnicity, or health is classified as sensitive under EU law and must adhere to strict processing rules.
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Meta responded by stating that it does not utilize such “special category data” for advertising purposes. A spokesperson added that the company takes privacy seriously, investing over five billion euros to prioritize privacy in its products. They also pointed out that users have access to various tools and settings to control how their data is used.
Schrems’ legal team welcomed the ruling, with his lawyer, Katharina Raabe-Stuppnig, noting that the decision restricts Meta’s use of personal data for ads, even when users provide consent.
Dr. Maria Tzanou, a legal expert from the University of Sheffield, highlighted that the judgement reinforces the importance of data protection principles for tech giants. Will Richmond-Coggan, a legal partner at Freeths, echoed this sentiment, suggesting the ruling could have significant effects on Meta’s business model, which relies on large-scale data collection for targeted advertising.
Although the judgement is not binding in the UK, similar challenges could arise in other jurisdictions, including the UK, based on comparable privacy laws.
The Austrian Supreme Court had referred the case to the EU’s top court in 2021, questioning whether Schrems’ public mention of his sexual orientation gave companies permission to use that information for targeted ads. The CJEU ruled that while it is up to Austrian courts to decide if Schrems made his sexual orientation “manifestly public,” it does not automatically authorize companies to process other personal data. The Austrian Supreme Court is expected to issue a final decision in the coming months.
Schrems has a history of challenging Meta in court over its handling of EU user data.
