Home Privacy Meta And Apple Face Fines And Privacy Headwinds In Europe

Meta And Apple Face Fines And Privacy Headwinds In Europe

SHARE:
A comic depicting Apple's ATT.
Turns out it’s actually better to ask for permission than for forgiveness, at least when it comes to privacy compliance in Europe.

Turns out it’s actually better to ask for permission than for forgiveness, at least when it comes to privacy compliance in Europe.

Apple and Meta are living proof.

On Wednesday, Apple was hit with an 8 million euro fine in France (just under $8.5 million) for failing to collect tracking consent from French iPhone users.

Separately, and also on Wednesday, European regulators ruled that Meta’s practice of using its terms of service to require people to consent to tracking for targeted advertising is illegal under the General Data Protection Regulation (GDPR).

Bad Apple

France’s data protection watchdog, the CNIL, levied its fine against Apple following multiple complaints, including one brought in March 2021 by France Digitale, a lobbying group representing French startups.

The group had argued that Apple was in breach of GDPR because Apple tracked iOS 14.6 users within its own apps without asking for consent.

The CNIL agreed, taking particular issue with the fact that users had to perform “a large number of actions” to deactivate Apple’s prechecked ad targeting settings. Le friction n’est pas bon.

(As a side note, for this particular ruling, the CNIL relied on the French Data Protection Act, rather than GDPR. Ireland has supervisory authority over GDPR enforcement against Apple in Europe.)

Following the 2021 complaint, Apple proactively started collecting consent to enable personalized advertising using a non-ATT pop-up on devices running on iOS 15 or later. But the CNIL still dinged Apple for enabling personalized advertising by default on older versions of its mobile operating system.

The CNIL’s ruling can be considered a victory, but IAB France was less than impressed with the size of the fine, noting in a statement that “for many years Apple has had an undue comparative advantage over all the other players in the mobile ecosystem that have not been given the same impunity, creating de facto distortions of competition.”

Out of service

Meanwhile, the European Data Protection Board’s judgment against Meta, which comes along with a 390 million euro fine (roughly $414 million), was not unexpected but does represent a major blow to its advertising business in Europe.

After GDPR went into effect in May 2018, Facebook began using a provision under the law called “contractual necessity” as a legal basis for processing personal data. Contractual necessity allows a company to process data as long as the processing is necessary for the service provided and is clearly defined in whatever contract the company has with the individual.

In other words, Facebook started requiring users to consent to tracking as part of its terms of service, effectively opting European users into tracking by default, because it’s impossible to use Facebook’s apps without agreeing to its T&Cs.

Austrian privacy activist and professional Facebook foe Max Schrems took issue with this setup and filed multiple complaints against Meta.

Ireland’s data protection authority originally issued a draft decision in Meta’s favor to say the company’s approach was legal. But after a report in early December 2022 that EU regulators were planning to rule against Meta, Ireland intimated that a new decision would be forthcoming in January.

The anvil finally dropped on Wednesday, when the European Data Protection Board overturned Ireland’s draft decision.

Although Meta has the opportunity to appeal, this ruling has the potential to upend the social media giant’s ad business in Europe.

Not only do “people now need to be asked if they want their data to be used for ads or not – they must have a ‘yes or no’ option and can change their mind at any time,” Schrems said in a statement. “The decision also ensures a level playing field with other advertisers that also need to get opt-in consent.”

Must Read

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Google Had Its Day In Court. Now, It’s Amazon’s Turn

Google won’t have to break up its ads business after being declared an online monopolist. Meanwhile, Amazon faces a lawsuit from the FTC alleging that it charged advertisers more than necessary for ecommerce ads.

The FTC’s Amazon Lawsuit Is Ad Tech’s History Of Opacity Repeating Itself

Buy-side experts said it’s another example of a Big Tech platform taking advantage of the lack of transparency built into programmatic ad auctions. And they’re not optimistic change is coming.

How The Fin Tech Clearco Finances Ecommerce Startups (Without Losing Its Shirt)

This week, the Commerce Media Newsletter catches up with a startup from outside the world of data-driven advertising, but with an interesting position when it comes to ecommerce advertising. That’s Clearco, a Canadian fin tech company founded in 2015.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
LOS ANGELES, CALIFORNIA - APRIL 26: Halo Collar CMO Seth Solomons attends a Celebration to Shine a Light On Dog Safety With Halo Collar on April 26, 2022 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Halo Collar)

How Halo Collar Uses Data And Incrementality To Raise Both Awareness And Sales

Halo Collar, a dog collar brand with direct-to-consumer origins, is preparing for its retail expansion by honing its first-party data strategy and incrementality measurement.

tech family cartoon technology family

CartographAI Launched To Help Advertisers Pick The Right Tech Vendors. Now, It’s Helping Vendors Market Themselves, Too

The company is launching an accelerator program to help tech vendors pitch their solutions in a way that makes sense to advertisers.

Comic: Weather Bar

Neuroscience And AI Are Transforming The Weather Company’s Measurement Stack

TWC is building a monetization model that treats weather as both a contextual and an emotional signal, and it’s using AI sales agents to bring it to market.