Business

July 05, 2023 : Facebook has suffered a legal setback in the European Union, with the Court of Justice (CJEU) ruling that the company's use of personal data for targeted advertising violates EU data privacy laws. The ruling, which was issued on Tuesday, is a major blow to Facebook, which could face fines of up to €20 million for each violation. The ruling also has implications for other tech giants that use personal data for targeted advertising, such as Google and Amazon.

The case against Facebook was brought by the German Federal Cartel Office (FCO), which argued that the company's use of personal data for targeted advertising was unfair and anti-competitive. The FCO said that Facebook's use of data gives it an unfair advantage over its competitors, as it allows the company to target ads more effectively. The CJEU agreed with the FCO, ruling that Facebook's use of personal data for targeted advertising violates the General Data Protection Regulation (GDPR), the EU's data privacy law. The court said that Facebook's use of data is not "necessary" for the provision of its services, and that it does not provide users with adequate information about how their data is being used.

The ruling is a major setback for Facebook, which has built its business model on the collection and use of personal data. The company has said that it is "disappointed" with the ruling, and that it is "considering its options." The ruling also has implications for other tech giants that use personal data for targeted advertising. Google and Amazon are both facing similar legal challenges in the EU, and the CJEU's ruling could have a significant impact on their businesses.

The ruling is a victory for privacy advocates, who have long argued that tech giants are collecting and using too much personal data. The ruling could also lead to changes in the way that tech giants collect and use personal data, as they will need to ensure that they are in compliance with the GDPR.

The CJEU's ruling is a significant development in the fight for data privacy in the EU. The ruling sends a clear message to tech giants that they cannot collect and use personal data without the consent of users. The ruling is also a reminder that the GDPR is a powerful tool that can be used to protect the privacy of individuals.