On October 4, 2023, the Court of Justice of the European Union has issued a significant ruling limiting the use of personal data by of Metathe parent company of Facebook. The decision was made in a case involving Max Schremsan Austrian privacy activist, who had objected to Meta’s practice of using personal information about his sexual orientation, obtained from external sources, to target targeted advertising. The Court ruled that such practices violate the General Data Protection Regulation (GDPR), which establishes strict regulations for the processing of personal data in Europe.
Max Schrems, known for his legal battles against tech companies’ data collection practices, filed a complaint in 2020 after receiving gay-specific advertisements on Facebook. Despite having made some aspects of his private life public, he argued that Meta had no right to use this information for commercial purposes. The Court agreed, stating that information regarding a person’s sexual orientation, although shared visibly, does not permit indiscriminate treatment for personalized advertising.
In its verdict, the CJEU clarified that even if an individual openly discusses his or her sexual orientation, the related information must be treated in compliance with the GDPR. This means that Meta cannot process further data relating to a user’s sexual orientation that comes from other channels outside the platform to aggregate and analyze such data for advertising purposes. The court ruling represents an important step forward in protecting user privacy and reinforces the principle of data minimization, which requires companies to limit the collection and use of personal data to only that which is strictly necessary.
Reactions to the news
Reaction to the court’s announcement has been positive, particularly from theSchrems’ lawyer, Katharina Raabe-Stuppnigwho underlined the importance of the sentence. According to her, the ruling will significantly reduce the amount of data Meta can use for advertising, while also forcing other online advertising companies to review their data collection practices. “Meta has amassed a vast reservoir of data on its users for 20 years, but will now find itself operating in a much more restrictive regulatory environment” were his words. This decision could not only change the way Meta handles data, but also significantly affect the entire online advertising landscape in Europe.
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