Meta, Facebook’s parent company, will cease political ad sales and displays in the EU from October onwards as a result of the Transparency and Targeting of Political Advertising (TTPA) legislation.
Meta has raised concerns regarding the law’s complexity and its impact on personalized advertising due to extensive requirements for political ads, encompassing clear labeling, sponsor disclosure, and explicit consent for data usage.
In an official statement, Meta detailed that the TTPA introduces substantial operational hurdles and legal uncertainties, creating complexity for advertisers and platforms within the EU.
EU Legislation Challenges Meta
Meta has disclosed that the regulations imposed by the TTPA threaten tailored advertising principles by imposing extensive limitations on ad targeting and delivery for political and social issue advertisers.
The company anticipates that these restrictions will reduce individuals’ exposure to relevant ads across their platforms, citing extensive consultations with policymakers that have culminated in a difficult decision: either modify services to offer an advertising solution that may not satisfy all stakeholders, or discontinue political, electoral, and social issue ad placements within the EU.
TTPA Requirements
Enforced by the European Commission, the TTPA mandates a high level of transparency for political advertisements, necessitating clear labeling, sponsor declaration, disclosure of pertinent election or referendum details, ad expenses, and targeting mechanisms.
The law also dictates that data collected for political ads can solely be utilized with explicit consent and prohibits the utilization of sensitive personal information, such as racial or political affiliations, for profiling purposes.
Google, another major player in the advertising industry, has previously announced its decision to discontinue political ad sales in the EU by October, echoing concerns about operational complications and legal ambiguities arising from the new legislation.