Meta to stop selling political ads in the EU, citing regulation

(Bloomberg/Kurt Wagner) — Meta Platforms Inc. will stop selling political and issue-focused advertising in the European Union, citing new regulations that the company believes creates “an untenable level of complexity and legal uncertainty.”

The Facebook and Instagram parent will disband its political advertising business in the EU beginning in early October, according to a blog post released Friday. The company cited new rules on transparency and targeting of political advertising, which take effect in October and limit the data that can be used to aim political messages at individuals.

Meta wrote in its blog post that it had “extensive engagement with policymakers” about this issue before the regulation was finalized, but the rules will “effectively remove popular products and services from the market, reducing choice and competition.” Alphabet Inc.’s Google also announced late last year that it will stop selling political ads in the EU.

The decision on political ads marks the latest in a series of conflicts between Meta and European regulators, who are working to rein in the power and data collection of big tech companies. EU regulators have challenged Meta’s plans to offer an ad-free version of its social networking services, and have fined the company almost €1 billion in the past 12 months. They also challenged Meta’s artificial intelligence features, leading the company to pause their rollout in the bloc, and earlier this month Meta said it won’t sign the code of practice for Europe’s new set of laws governing AI.

Intel cuts back spending, workforce as struggling chip maker mounts comeback

Tech company headquarters in San Jose bought at a discount

Fremont goes ‘all in on AI boom’ with new tech campus

Tesla braces for rough quarters ahead as US ends EV incentives

Intel’s CEO needs a path to profits to win over stock skeptics

It’s unlikely the move on political ads will have a significant impact on Meta’s business. Chief Financial Officer Susan Li said in February 2024 that political advertising globally is “not really a material contributor” to the company’s revenue growth, though it still sells political and issue-focused ads in the US and other countries.

More stories like this are available on bloomberg.com