Meta, the parent company of Facebook, has declared that it will halt political advertising sales and displays in the European Union (EU) from October onwards. This decision is in response to the upcoming Transparency and Targeting of Political Advertising (TTPA) legislation within the Bloc. Meta has expressed concerns about the law’s intricacy and its implications on personalized advertising.
The TTPA requires a high level of transparency for political advertisements, encompassing elements such as clear labeling, sponsor disclosure, and obtaining consent for data utilization.
As per Meta’s announcement, the TTPA will introduce substantial challenges and legal uncertainties due to the additional obligations it imposes on their systems and processes. The company views these requirements as presenting a level of complexity and legal ambiguity that is unmanageable for advertisers and platforms functioning in the EU.
Threat to Personalized Advertising Principles
Meta stated that the TTPA’s strict restrictions on ad targeting and delivery will limit the ways in which political and social issue advertisers can engage with their target audiences. This limitation is projected to result in reduced visibility of relevant ads for individuals on Meta platforms.
Despite engaging extensively with policymakers to convey these apprehensions, Meta finds themselves facing a challenging decision. The company must either overhaul its services to provide an advertising solution that may not meet the needs of advertisers and users while lacking assurance of compliance, or cease the display of political, electoral, and social issue ads within the EU. Meta asserts that these actions pose yet another obstacle to the core principles of personalized advertising.
Legal Mandates under TTPA
The TTPA, sanctioned by the European Commission in 2024, mandates a high level of transparency for political ads. Companies engaged in the sale of these ads are obligated to distinctly label them, disclose the sponsoring entity, specify the relevant election or referendum, reveal the ad’s cost, and elucidate the mechanisms used for targeting. This legislation also stipulates that information collected for political ads can solely be utilized with explicit consent and forbids the use of sensitive personal data like racial or ethnic origin, or political opinions, for profiling.
Google’s Similar Decision
Google, another major player in the advertising industry, previously declared its decision to discontinue the sale of political ads within the EU before October. The tech giant emphasized the significant operational hurdles and legal uncertainties that arise from compliance with the new law.
