Meta Faces Data Retention Limits On Its EU Ad Business After Top Court Ruling

An anonymous reader quotes a report from TechCrunch: The European Union's top court has sided with a privacy challenge to Meta's data retention policies. It ruled on Friday that social networks, such as Facebook, cannot keep using people's information for ad targeting indefinitely. The judgement could have major implications on the way Meta and other ad-funded social networks operate in the region. Limits on how long personal data can be kept must be applied in order to comply with data minimization principles contained in the bloc's General Data Protection Regulation (GDPR). Breaches of the regime can lead to fines of up to 4% of global annual turnover -- which, in Meta's case, could put it on the hook for billions more in penalties (NB: it is already at the top of the leaderboard of Big Tech GDPR breachers). [...]

The original challenge to Meta's ad business dates back to 2014 but was not fully heard in Austria until 2020, per noyb. The Austrian supreme court then referred several legal questions to the CJEU in 2021. Some were answered via a separate challenge to Meta/Facebook, in a July 2023 CJEU ruling -- which struck down the company's ability to claim a "legitimate interest" to process people's data for ads. The remaining two questions have now been dealt with by the CJEU. And it's more bad news for Meta's surveillance-based ad business. Limits do apply. Summarizing this component of the judgement in a press release, the CJEU wrote: "An online social network such as Facebook cannot use all of the personal data obtained for the purposes of targeted advertising, without restriction as to time and without distinction as to type of data."

The ruling looks important on account of how ads businesses, such as Meta's, function. Crudely put, the more of your data they can grab, the better -- as far as they are concerned. Back in 2022, an internal memo penned by Meta engineers which was obtained by Vice's Motherboard likened its data collection practices to tipping bottles of ink into a vast lake and suggested the company's aggregation of personal data lacked controls and did not lend itself to being able to silo different types of data or apply data retention limits. Although Meta claimed at the time that the document "does not describe our extensive processes and controls to comply with privacy regulations." How exactly the adtech giant will need to amend its data retention practices following the CJEU ruling remains to be seen. But the law is clear that it must have limits. "[Advertising] companies must develop data management protocols to gradually delete unneeded data or stop using them," noyb suggests. The court also weighed in a second question that concerns sensitive data that has been "manifestly made public" by the data subject, "and whether sensitive characteristics could be used for ad targeting because of that," reports TechCrunch. "The court ruled that it could not, maintaining the GDPR's purpose limitation principle."