Aim The accumulation of problems in the European Union (EU) does not stop. this regulators European privacy regulators, Facebook, the company that owns Instagram, What’s up? and other apps cannot require their users to agree to: ads A directly threatening decision, based on its activities within the platform, the ‘Wall Street Journal’ asserted exclusively. business.
By accepting the terms of service to use Facebook, Instagram or WhatsApp, you agree that the company monitors everything you do on your own account. platformthis helps them get to know you better and sell advertisers the possibility to bombard you. advertisement personalized.
The decision was approved Monday by the European Data Protection Committee (EDPB), the body responsible for ensuring compliance with community data protection laws. Data protectionConsidering that the regulations do not allow Meta’s advertising activities.
A blow to Meta’s business
Advertising is Meta’s main business model. Giant of the world in 2021 social networks earned $114,934 million from ad sales, which accounted for 97.5% of its revenue. A significant number of them come from EU-based companies, so the decision of the authorities threatens to undermine their business.
The European decision came at a particularly difficult time for the Mark Zuckerberg-led company. For the first time since it went public in 2012, Meta has chained two consecutive periods when its revenues fell. Among other cyclical factors, the so-called metaverse (yet) irreversible investment is due to TikTok’s fierce competition and privacy policies. view which reduced Meta’s ad revenue by up to $100,000 a year. On the other hand, the macroeconomic turmoil has caused many companies to cut back on their advertising investments, which hurt the old Facebook’s business. That’s why it announced on November 9 that it was laying off approximately 11,000 employees worldwide.
For now, this decline has already been noticed in the stock market. After the news broke, Meta fell almost 6% and dragged down other social companies tied to the same type of advertising business. blow up anyone pinterest. So far this year, Meta’s stock market value has dropped 66%.
According to sources familiar with the decision, the European regulator has ordered the Irish Data Protection Commission to make a decision to that effect. The financial center of Meta’s European division is in Ireland, so it is the country body that has to issue orders about the company. Last week, the Irish regulator fined Meta 265m euros for a security breach that exposed the data of up to 500,000 European users.