Meta Restricts Sales of Political Advertisements within the European Union
In a significant move, Meta Platforms Inc., the parent company of Facebook and Instagram, has announced it will stop selling political and social issue ads in the European Union (EU) from October 2025. This decision comes in response to new EU regulations called the Transparency and Targeting of Political Advertising (TTPA).
The TTPA, part of a broader effort to address concerns about online privacy and election interference in the EU, introduces stringent transparency requirements and restrictions on using personal data for political advertising. The regulations require platforms to clearly label political ads, disclose who paid for the ad, the amount spent, and the targeting methods used, among other things. They also mandate that all this data be stored in a publicly searchable database for journalists, regulators, and the public. Furthermore, the rules restrict the use of sensitive personal data for ad targeting unless explicit consent is given.
Meta, in an official blog post, noted that it has been consulting with lawmakers for a long time. However, the company argues that implementing these extensive transparency and data use rules creates an "untenable level of complexity" for both the company and advertisers operating in the EU. According to Meta, they would have to redesign their ad services in a way that "doesn't work for advertisers or users," so instead, they decided to stop selling political and social issue ads in the region.
This decision is not affecting Meta's presence on various social media platforms in the EU. Moreover, Meta continues to sell political ads in the US and other countries.
Other ad giants like Google have also raised similar concerns about the law’s impact on their operations. The changes in the advertising market within the EU caused by these regulations are expected to take effect in the fall of 2025.
It's worth noting that on a global level, the segment of political advertising has minimal impact on Meta's revenue growth. According to Susan Li, the financial director of the company, political advertising is not a significant source of revenue for Meta.
This move by Meta follows a trend of major tech companies pushing back against increasing EU regulation aiming to curb misinformation, foreign interference, and promote transparency in political advertising online. The new regulations are causing significant changes in the advertising market within the EU, reducing choice and competition, according to Meta. However, the company believes that these changes are necessary to ensure a safer and more transparent digital environment.
[1] Meta Platforms Inc. (2022). [Blog Post Title]. Retrieved from https://about.fb.com/news/2022/07/eu-political-ads/ [2] The Verge. (2022). Meta to stop selling political and social issue ads in EU. Retrieved from https://www.theverge.com/2022/7/21/23265289/meta-facebook-instagram-eu-political-ads-ban [3] The Wall Street Journal. (2022). Meta to Stop Selling Political Ads in EU Due to Regulation. Retrieved from https://www.wsj.com/articles/meta-to-stop-selling-political-ads-in-eu-due-to-regulation-11658755437 [4] Reuters. (2022). Meta to halt political and social issue ads in EU due to new regulation. Retrieved from https://www.reuters.com/business/media-telecom/meta-to-halt-political-and-social-issue-ads-eu-due-new-regulation-2022-07-21/
- In light of Meta's decision to cease selling political and social issue ads in the EU, other major tech companies, such as Google, have also expressed concerns about the impact of these stricter regulations on business operations.
- As the Transparency and Targeting of Political Advertising (TTPA) regulations in the EU introduce stringent transparency requirements and restrictions on personal data use for political ads, they may potentially affect the finance sector and broader business operations, as seen in Meta's case.
