Why the record 390 million euro fine imposed on Meta calls into question its business model

This decision could ultimately overhaul the entire economic model that underpins Meta. Targeted advertising actually represented nearly 98% of the group’s revenue in 2021, which amounts to $118 billion in 2021, and its ambitions in the metaverse today are a decline in overall revenue.

Privatlivsforeningen Noyb, which has brought the three cases to court, welcomes this decision and hopes that this blow to the group’s finances, which are no longer in good shape, will have an impact on the consumer. ” Now you need to ask people if they want their data used for ads or not. They must have a “yes or no” option and can change their mind at any time. The decision also ensures a level playing field with other advertisers, who must also obtain opt-in consent. “, declared Max Schrems, honorary president of Noyb.

The DPC requires the group to comply with court orders within the next three months. However, Meta intends to appeal this decision and wants to reassure its advertiser customers: ” These decisions do not prevent targeted or personalized advertising on our platform. The rulings only concern the legal basis Meta uses to display certain ads. Advertisers can continue to use our platforms to reach potential customers, grow their business and create new markets. ยป

While Meta continues to be involved in the creation of the metaverse, with multi-billion dollar investments every year and the economic crisis making advertisers wary, Meta will have to fight hard not to lose control of its juicy advertising system.

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