Meta to stop selling political ads in the EU, citing regulation
Meta Platforms Inc will stop selling political and issue-focused advertising in the European Union, citing new regulations that the company believes creates "an untenable level of complexity and legal uncertainty.'
The Facebook and Instagram parent will disband its political advertising business in the EU beginning in early October, according to a recent blog post. The company cited new rules on transparency and targeting of political advertising, which take effect in October and limit the data that can be used to aim political messages at individuals.
Meta wrote in its blog post that it had "extensive engagement with policymakers' about this issue before the regulation was finalised, but the rules will "effectively remove popular products and services from the market, reducing choice and competition.' Alphabet Inc's Google also announced late last year that it will stop selling political ads in the EU.
The decision on political ads marks the latest in a series of conflicts between Meta and European regulators, who are working to rein in the power and data collection of big tech companies. EU regulators have challenged Meta's plans to offer an ad-free version of its social networking services, and have fined the company almost €1bil (RM4.9bil) in the past 12 months. They also challenged Meta's artificial intelligence features, leading the company to pause their rollout in the bloc, and earlier this month Meta said it won't sign the code of practice for Europe's new set of laws governing AI.
It's unlikely the move on political ads will have a significant impact on Meta's business. Chief financial officer Susan Li said in February 2024 that political advertising globally is "not really a material contributor' to the company's revenue growth, though it still sells political and issue-focused ads in the US and other countries. – Bloomberg
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