EU Court rules Facebook cannot use data on sexual orientation for ads

luxembourg - The European Union Court decided that Facebook and Instagram cannot use information on people's sexual orientation for targeted advertising.

The ruling came after a lawsuit filed by privacy activist Max Schrems against Facebook's parent company Meta. He received ads targeting homosexual individuals, even though he never disclosed his orientation on his Facebook profile. He also never gave Meta permission to use such data about him. He initiated a lawsuit in Austria to make Facebook stop processing data on his interests to determine his orientation. This tracking behavior by Meta, based on browsing behavior on other sites, would violate European privacy rules.

Ultimately, the highest court in Austria asked the European Court of Justice for more clarity on the interpretation of European privacy laws. It raised the question of whether a company like Meta can collect and indefinitely store all kinds of user information for targeted advertising. It also questioned whether Schrems had not waived the right to shield information about his orientation because he openly stated his homosexuality at a roundtable discussion in Vienna.

The ruling could have significant implications for internet companies on how they monetize in the European Union. Meta earns substantial revenue by placing ads based on various personal data in front of the best possible audience.