The European Court of Justice (CJEU) ruled on October 4 that Meta, the parent company of Facebook, must limit the use of personal data collected from its users for ads, even if users have given consent. This decision could have serious effects on companies that rely on ads within the region. According to the ruling, social media sites like Facebook cannot use all the personal data they collect for ad purposes without clear time limits or clear rules on data types.
The court stated that the General Data Protection Regulation (GDPR) requires companies to stick to strict limits on the amount of data they process. Article 5 (1)(c) of the GDPR is key here, as it says data use must be limited to what is needed and not beyond that. This prevents companies from collecting personal data, either on their own platform or through third-party websites, and then using that data indefinitely for targeted ads.
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Privacy Case Triggers New Rule
The case that led to this ruling dates back to 2014, when privacy advocate Max Schrems, who helped start the group noyb (None Of Your Business), accused Facebook of using his data for ads based on his sexual orientation. Schrems argued that Meta used personal details gathered from his online behavior to show him ads, without properly limiting the scope of data used. The court backed Schrems, stating that the fact someone might share sensitive data in public does not allow platforms like Facebook to use other data gathered through third parties without consent.
This ruling will impact Meta as well as other firms that rely on online ads. It will likely force them to adjust how they handle user data to comply with GDPR’s strict privacy terms. Companies can no longer use users’ personal details freely for ad purposes without meeting limits on time and data types. The court’s decision will also likely set new guidelines for all firms in the EU and protect users from unnecessary tracking and data misuse. Schrems and his group welcomed the decision, which noyb said was in line with what they expected. The judgment serves as a reminder that online ad companies need strong data policies, and those without clear deletion rules will face penalties.
