Meta, Facebook’s parent company, has announced it will stop selling and displaying political advertisements in the European Union (EU) starting October, in response to the upcoming Transparency and Targeting of Political Advertising (TTPA) legislation.
The TTPA demands transparency with clear labeling, sponsor disclosure, and consent for data usage in political ads. Meta expressed concerns over the law’s complexity and its impact on personalized advertising, stating that the requirements present significant operational challenges and legal uncertainties.
According to Meta, the TTPA introduces additional obligations that create a high level of complexity and legal uncertainty for advertisers and platforms in the EU, prompting the decision to halt political ads sales.
EU Rules Threaten Personalized Advertising Principles
Meta argues that the TTPA’s restrictions on ad targeting and delivery will limit how political and social issue advertisers can reach their audiences, potentially resulting in less relevant ads being displayed on the company’s platforms.
Despite engaging with policymakers, Meta explains that it faced a dilemma – either alter its services to comply with the law, risking non-compliance, or stop allowing political, electoral, and social issue ads in the EU. The company views this as a threat to the principles of personalized advertising.
The TTPA, put forth by the European Commission, enforces transparency in political ads by requiring clear labeling, sponsor disclosure, and limits on data usage, including explicit consent for data collection. The law prohibits the use of sensitive personal data for profiling, such as racial or ethnic origin and political opinions.
Google has also announced its decision to stop selling political ads in the EU by October, citing similar operational challenges and legal uncertainties arising from the new law.
