Meta, the parent company of Facebook and Instagram, is facing a potential daily fine of $100,000 from Norway's data protection authority, Datatilsynet, due to privacy concerns related to user advertising. The regulator stated on July 17 that unless Meta takes action to comply with the law, it will impose a "temporary ban" on behavioral advertising, a marketing practice that profiles users without their consent.
Behavioral advertising involves collecting various data about users, including their physical locations, in order to target them with personalized advertisements. However, Datatilsynet has deemed this practice illegal in Norway. The ban is set to begin on August 4 and will last for three months or until Meta can demonstrate compliance with the law. If Meta fails to comply, it risks incurring a fine of up to 1mn Norwegian kroner (nearly $100,000) per day.
Tobias Judin, the head of the international department at the Norwegian Data Protection Authority, clarified that the ban is not intended to block Facebook or Instagram in Norway but rather to ensure the secure use of these services and protect users' rights.
In response to the decision, Meta stated that it will review Datatilsynet's ruling, emphasizing that there is currently no immediate impact on its services. The company also highlighted the ongoing debate surrounding the legal bases of behavioral advertising and mentioned its constructive engagement with the Irish Data Protection Commission, the lead regulator in the European Union (EU), regarding compliance with its decisions.
While Norway is not an EU member, it is part of the European Economic Area (EEA). Datatilsynet referred to a December ruling by the Irish Data Protection Commission, which ordered Meta to align its behavioral advertising practices with European law by April. The regulator also cited a recent judgment from the EU's highest court, which found that Meta's practices still did not comply with the law.
Datatilsynet expressed concern over Meta's continuous non-compliance and its potential to further delay adherence to the regulations. The regulator may escalate the matter to the European Data Protection Board, which could extend the ban beyond Norway, leading to wider implications across the continent.
Meta has been facing scrutiny over data privacy issues for some time. In May, the EU imposed a record $1.3bn fine on the company and directed it to halt the transfer of users' personal information across the Atlantic by October. Additionally, Meta's text-based app, Threads, has yet to be launched in the EU due to privacy concerns.
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