Meta, Facebook’s parent company, has announced its decision to cease political ad sales and displays in the European Union (EU) starting October. This action is in response to the upcoming Transparency and Targeting of Political Advertising (TTPA) legislation imposed by the Bloc. Meta is concerned about the complexity of the law and how it will impact personalized advertising.
The TTPA introduces extensive transparency requirements for political ads, including clear labeling, sponsor disclosure, and explicit consent for data usage. Meta expressed that these demands pose significant challenges and legal uncertainties for advertisers and platforms operating within the EU.
Threat to Personalized Advertising
Meta stated that the TTPA’s restrictions on ad targeting and delivery will limit the ability of political and social issue advertisers to connect with their audiences effectively. This limitation is expected to result in individuals seeing less relevant ads on Meta platforms. Despite engagements with policymakers to address these concerns, Meta feels compelled to choose between altering its advertising services to meet the new requirements or discontinuing political, electoral, and social issue ads in the EU to comply with the law.
The European Commission adopted the TTPA in 2024 to ensure transparency in political advertising. The legislation mandates that companies selling political ads must provide clear labeling, sponsor disclosure, the election or referendum associated with the ad, cost details, and information about targeting methods. Additionally, the law prohibits using sensitive personal data like racial or ethnic origin or political opinions for ad profiling purposes.
Google, another major player in the advertising industry, has also announced plans to stop selling political ads in the EU by October. The company cited operational challenges and legal uncertainties as reasons for this decision.
