Facebook, Instagram should not agree to personalised ads, EU rules

The European Union regulators have ruled that Meta Platforms' Facebook and Instagram should not require users to agree to personalised ads based on their digital activity, according to the Wall Street Journal on Tuesday, citing people familiar with the decision.

The report said that the ruling was approved by a board representing all EU privacy regulators and could limit the data that Meta can access to sell ads. In morning trade, the company's shares were down 2.5 per cent.

The EU privacy law does not allow Meta's social media platforms to use their terms of service as a justification to allow advertising based on online activity, according to the report.

The rulings, which have not yet been publicly disclosed, do not directly order Meta to change practices but call for Ireland's Data Protection Commission to issue public orders that reflect its decisions, along with significant fines, the report said.