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Meta: sanctions from the norwegian data controller and possible future repercussions

Effects of Datatilsynet's decision on Meta's advertising practice and possible future scenarios

Meta, the owner of Facebook and Instagram, has been fined by Datatilsynet, the Norwegian data protection authority. The fine is 1 million Norwegian kroner per day for 3 months, starting on 4 August. The decision follows a July 4 ruling by the Court of Justice of the European Union, which required Meta to stop collecting certain user data for targeted advertisements. Despite some changes to its system, the company's stock is considered insufficient.

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The norwegian data protection regulator, Datatilsynet, said that Meta, the conglomerate behind Facebook and Instagram, will face a daily fine of 1 million Norwegian kroner (about 88,800 euros) for the next three months, starting from 4 August. This is the result of a July 4 ruling by the European court which required Meta to stop collecting specific data not voluntarily offered by users for the creation of targeted advertisements.

Geographical position of Norway and its influence on the issue

Although Norway is not a member of the European Union, it is part of the European Economic Area (EEA), which through the Irish Data Protection Authority (DPC) has labeled such practices by Meta as illegal. Therefore, the EEA has requested Ireland-headquartered Meta to stop illegal practices related to data-driven behavioral advertising.

Adequate Meta system changes considered insufficient

According to Datatilsynet, Meta made certain indeterminate changes to its system, but these were deemed insufficient. On 4 July, the Court of Justice of the European Union decreed that Meta did not fully comply with the request. Therefore, the Norwegian regulator has decided to impose a fine on Meta that could reach a total of more than 8 million euros in 3 months, if the necessary changes are not made.

Uncertain future for Meta and its services

While the fine doesn't have a significant financial impact on a company of Meta's size, the Norwegian regulator's action is intended as a warning to the digital giant, which could face similar fines in other European countries. Meta showed no particular concern, but said it was evaluating Datatilsynet's decisions. The dispute between the European Union and large digital companies such as Meta has been going on for over a decade, also influencing the launch of other services such as Threads, still not available in Europe due to privacy issues.

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07/17/2023 21:00

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