January 4, 2023

"Meta suffered a major defeat on Wednesday... after European Union regulators found it had illegally forced users to effectively accept personalized ads...."

"The ruling is one of the most consequential judgments since the 27-nation bloc, home to roughly 450 million people, enacted a landmark data-privacy law aimed at restricting the ability of Facebook and other companies from collecting information about users without their prior consent.... The company includes language in its terms of service agreement, the very lengthy statement that users must accept before accessing services like Facebook, Instagram and WhatsApp, that effectively means users must allow their data to be used for personalized ads or stop using Meta’s social media services altogether."

From "Meta’s Ad Practices Ruled Illegal Under E.U. Law/The decision is one of the most consequential issued under the E.U.’s landmark data-protection law and creates a new business headwind for the social media giant" (NYT).

23 comments:

hawkeyedjb said...

"[C]ollecting information about users" is the only reason for Facebook's existence. It seems like this might crimp their business model, at least in Europe.

Ann Althouse said...

Why isn't Meta stock down?

Ice Nine said...

>Ann Althouse said...
Why isn't Meta stock down?<

What, down 65% for '22 isn't enough? (-;

Meta is actually up about three points today. The answer to your question is: Because its rival, TikTok, laid off hundreds of employees yesterday, suggesting that TikTok is having some problems.

Also, the EU/Meta news is fresh this morning; Meta stock might well still slip today.

Enigma said...

It couldn't happen to a more deserving organization. Facebook engaged in one-sided dirty data tricks as far back as 2007 with its Beacon function. Avoid Meta/Facebook at all costs.

https://en.wikipedia.org/wiki/Facebook_Beacon

"We know what you are doing at all times. We are here to serve you. We are here to serve you on a platter with an apple in your mouth."

Enigma said...
This comment has been removed by the author.
Critter said...

Good. If Facebook goes away, good riddance.

n.n said...

Andrea, Alexa, Cortaney, Siriously, stop spying on me.

stlcdr said...

"...Information about a user’s digital history — such as what videos on Instagram prompt a person to stop scrolling, or what types of links a person clicks when browsing their Facebook feeds — is used by marketers to get ads in front of people who are the most likely to buy. ..."

This is...odd. This does not appear to be using any personal information at all. Isn't is simply tracking a behavior?

Maybe I'm wrong, but it seems that this is something that hosts have to monitor: if a million people (doesn't matter who they are) are watching videos on how to put on adult diapers, then there's a technical interest to make sure that video is available. The resultant 'ad' is the relationship between the video and the ad, and not between the user and the ad (arguably an indirect connection).

Big Mike said...

Zuckerberg evidently didn’t spend enough on bribes.

Big Mike said...

"We know what you are doing at all times. We are here to serve you. We are here to serve you on a platter with an apple in your mouth."

@Enigma, very true. “How to Serve Man” is a cookbook.

Tom T. said...

Maybe I don't use it enough, but I've never received an ad on Facebook that seemed effectively targeted at me. Lately it's all been Viagra and Rogaine.

Leland said...

In the US, Meta has now required all previous Oculus users to create Meta accounts for reasons likely similar to what the EU found. From a business model for Meta, this new requirement in US users may prop up the VR division in the near term. However, none of what my Meta account provides me over Oculus is making me want to use the Meta features. I don’t want an avatar in the VR world. I don’t want to use Meta to socialize with others. I want my Oculus VR to watch content on YouTube, Amazon, or other steaming service. Meta is a wrapper service that doesn’t provide enhanced value.

I generally don’t like EU being a nanny, but it is amazing to watch the lengths Silicon Valley companies will go to skirt EU law and intent. For example, Microsoft now asks me on a bi-weekly basis if I want to use Microsoft Edge as my default browser in its default state, so they can track my information. It is rather irrelevant that they allow me to say “no”, when they ask me the same question every other week, with buttons making it easier to agree with them than to disagree.

Temujin said...

Well, at least they haven't meddled in any national elections.

iowan2 said...

If you are not paying for the product...you are the product.

Rabel said...

"Maybe I don't use it enough, but I've never received an ad on Facebook that seemed effectively targeted at me. Lately it's all been Viagra and Rogaine."

The best jokes are the ones you aren't sure are jokes.

Jupiter said...

I am reminded of the days, long ago, when Bill Gates refused to hire any DC lobbyists. He claimed that Microsoft made a top-notch product, and did not need government assistance. A guy named David Boies explained his error to him. Perhaps that was when he decided that, if you're going to have to pay for government, you might as well own it.

Jason said...

Why isn't Meta stock down?

Because the Market, collectively, already figured they would lose.

It was already baked into the stock price a long time ago.

Jason said...

Tom T.

Maybe I don't use it enough, but I've never received an ad on Facebook that seemed effectively targeted at me. Lately it's all been Viagra and Rogaine.

Give it time, spring chicken. Give it time.

Zavier Onasses said...

Pro tip. Abjure Social Media.

tim maguire said...

Without declaring support for the EU position, I am glad they objected to how the TOU was used to sneak in this feature. Those agreements are designed to not be read, and not to be understood in the event they are read. They are unreasonably anti-consumer and are often used to sneak in permissions that a company could never get directly. They should be legally unenforceable.

tim maguire said...

Leland said...It is rather irrelevant that they allow me to say “no”, when they ask me the same question every other week, with buttons making it easier to agree with them than to disagree.

They just need you to get careless once and accidentally hit "yes." If they keep asking, sooner or later you will give them what they want.

Leland said...

Tim, yep and it is damn obvious.

Randomizer said...

For some time, it has been noteworthy that user privacy on the internet has been driven by the EU, with the US government apparently disinterested. I haven't been closely following the Twitter Files, but don't recall any mention of EU governmental agencies partnering with Big Tech to manipulate their citizens.