EU Court Bolsters Data Privacy, Restricting Meta’s Use of Sexual Orientation Information for Ads

The European Union’s highest court has delivered a significant victory for online privacy, ruling that Meta (formerly Facebook) cannot utilize publicly available information about a user’s sexual orientation for targeted advertising. This decision reinforces the EU’s commitment to strong data privacy protections and sets clear limits on how companies can use sensitive personal information, even if it’s publicly disclosed.

The case was brought by Austrian privacy activist Max Schrems, known for his ongoing legal battles with Big Tech companies over data privacy practices. Schrems challenged Facebook’s practice of targeting him with ads based on his sexual orientation, despite never explicitly disclosing this information on his Facebook profile. He had only publicly revealed his sexual orientation during a panel discussion.

The Court of Justice of the European Union (CJEU), based in Luxembourg, ruled in Schrems’ favor, emphasizing that a social media platform cannot indiscriminately use all personal data it gathers for targeted advertising, even if users consent to personalized ads.

The court highlighted the principle of “data minimization” enshrined in the EU’s General Data Protection Regulation (GDPR), which requires companies to collect and process only the minimum amount of personal data necessary for their intended purpose.

In its ruling, the CJEU stated that Facebook’s aggregation and analysis of data related to a user’s sexual orientation obtained from external sources, even if disclosed publicly, violates the GDPR. The court emphasized that such sensitive personal information cannot be exploited for commercial gain without explicit and informed consent from the user.

Meta, while stating that it prioritizes user privacy, acknowledged the court’s decision and is awaiting the full judgment. The company maintains that users have control over their data through various settings and tools available on its platforms.

Schrems’ legal team applauded the ruling, stating that it significantly limits the amount of data Meta can use for advertising, even with user consent, and sets a strong precedent for protecting sensitive personal information.

Key Takeaways:

• The CJEU ruled that Meta cannot use publicly available data about a user’s sexual orientation for targeted advertising, even with user consent for personalized ads.
• This decision strengthens the EU’s GDPR and its emphasis on data minimization and protecting sensitive personal information.
• The ruling sets a precedent for how online platforms handle sensitive user data and could influence data privacy regulations globally.

This judgment marks a crucial step in safeguarding online privacy rights and curbing the potentially exploitative use of sensitive personal information by tech giants. It emphasizes the need for companies to prioritize user privacy and obtain explicit consent before processing such data, even if it is publicly available.