capitalism is getting a kick. In an ultimatum, the European Union has demanded that Meta reform its approach to personalized advertising, which could have profound consequences for a company that has grown impressively rich by.
The 390 million fine attached to the ruling is a huge blow to Big Tech in general. It is a sign that the law has teeth. Since it took effect, more than 1,400 fines have been introduced, but this time the bloc's regulators have shown they are willing to take on the very business model that makes surveillance capitalism. Johnny Ryan is a senior fellow at the Irish Council for Civil Liberties.
Understand how Meta makes its billions to appreciate why. Users of Meta agree to the company's terms of service in order to use its products. In a ruling yesterday, Ireland's data watchdog, which oversees Meta because the company's EU headquarters are in Dublin, said that the way in which personalized ads are bundled with terms of service is a violation of the EU's General Data Protection Regulation. Two complaints were made on the day that the EU's General Data Protection Regulation came into effect.
Privacy activists say the ruling shows that change is coming. How do they move forward? In order to stop these litigations that require them to change constantly, they need to move forward in a way that stops these litigations.
It was a blow to companies that rely on user data for advertising revenue. Meta told investors that Apple's move would reduce the company's sales by $10 billion. According to different estimates, between 54 and 96 percent of Apple users didn't want to be tracked. One of the company's main revenue streams would be threatened if a similar system were to be introduced.
Meta insists that it doesn't need to change the way it does business in response to the EU ruling. Users and businesses can benefit from personalized advertising across the EU through Meta's platforms.