Meta must limit data for personalised ads - EU court

Published On Oct 4, 2024, 7:54 AM

The EU's highest court, the Court of Justice of the European Union (CJEU), has ruled that Meta (Facebook) needs to minimize the use of personal data for targeted advertising, following a case brought by privacy activist Max Schrems. The court decided that even if users consent to data usage, Meta cannot use all obtained personal data indefinitely or without restrictions. This development poses a significant challenge to Meta's business model, which relies heavily on data collection for ad targeting, potentially leading to stricter regulations governing data usage in Europe and other regions.

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Stock Forecasts

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Negative

Given the significant regulatory challenge imposed on Meta's business model, investor sentiment may turn apprehensive, leading to a short-term decline in stock price. However, long-term effects will depend on how effectively Meta adapts its advertising strategy in response to these regulations. Investors should monitor developments closely.

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