Meta, the parent company of Facebook, has announced its decision to halt political ad sales and displays in the European Union (EU) starting in October. This move comes in light of the upcoming Transparency and Targeting of Political Advertising (TTPA) legislation within the bloc. Meta has expressed concerns regarding the complexity of the law and its impact on personalized advertising.
The TTPA imposes stringent requirements for political ads, including the need for clear labeling, sponsor disclosure, and consent for data usage. The legislation is set to significantly impact the way political and social issue advertisers can target and deliver their ads to audiences. Meta stated in a blog post that these requirements introduce operational challenges and legal uncertainties for advertisers and platforms operating in the EU.
According to Meta, the TTPA poses a threat to the core principles of personalized advertising. The extensive restrictions on ad targeting and delivery outlined in the legislation may result in users seeing less relevant ads across Meta’s platforms.
The company highlighted the dilemma it faces: either adapt its services to comply with the legislation, with no guarantee of full compliance, or cease allowing political, electoral, and social issue ads in the EU. Meta views the legislation as another obstacle to the core principles of personalized advertising.
Enacted by the European Commission in 2024, the TTPA mandates a high level of transparency for political ads. Advertisers are required to clearly label their ads, disclose the sponsoring entity, specify the election or referendum relevant to the ad, detail the cost of the advertisement, and outline the targeting mechanisms used. Moreover, the law mandates that data collected for political ads can only be used with explicit consent and prohibits the use of sensitive personal data such as racial or ethnic origin and political opinions for profiling.
Google, a significant player in the advertising industry, has also announced its decision to discontinue selling political ads in the EU by October. Google cited the substantial operational challenges and legal uncertainties posed by the new legislation as reasons for this move.
