Meta shares are tumbling this morning, weighing on the broad market, after The Wall Street Journal reports that privacy regulators at the European Union ruling that the Facebook owner shouldn’t require users to agree to personalized ads based on their online activity.
If any significant portion of its users opts out of such targeting, Facebook and Instagram would end up with less information with which to build audiences for the personalized ads that analysts and people close to the company say make up the bulk of its revenue.
The ruling of the board, which represents all EU privacy regulators, hadn't been disclosed publicly.
“This is not the final decision and it is too early to speculate,” said a Meta spokesman.
“We’ve engaged fully with the DPC on their inquiries and will continue to engage with them as they finalize their decision.”
META shares are down 5% on the headlines...
And the weakness is dragging on the broad indices...
Meta has previously argued that tailoring the ads it sells based on data it has about users’ online behavior is a necessary part of the personalized service it offers. The coimpany will also be able to appeal the EU decision.