Meta was fined $410 million (€390 million) for violating EU data rules.
According to the Irish Data Protection Commission (DPC), Meta's request for permission to use people's data for adverts on Facebook and Instagram was illegal.
Meta, the company that owns both platforms, has three months to modify how it acquires and utilizes data to target advertisements.
Meta expresses "disappointment" and plans to appeal, emphasizing that the judgment does not preclude tailored advertising on its platforms.
According to the authority, Facebook and Instagram cannot "forced consent" by requiring users to agree on how their data is handled or leave the platform.
Because Facebook and Instagram have European headquarters in Ireland, the DPC guarantees that they follow EU data protection laws.
Privacy advocates say the judgment is a significant victory because it requires Meta to give people meaningful control over how their data is used to target online adverts.
It implies Meta will have to adjust how a critical portion of its business operates.
The company's revenue, more than $118 billion (£97.8 billion) in 2021, comes from advertising.
The fine marks the watchdog's second large penalty in recent months.
The DPC penalized it €265 million (£228 million) in November for a data breach that resulted in the personal information of hundreds of millions of Facebook users being published online.
According to the Irish Times, Meta has set aside €2 billion (£1.7 billion) to pay anticipated European fines in 2023.
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Meta Fined $410m Over the use of Data
General FictionMeta was fined $410 million (€390 million) for violating EU data rules. According to the Irish Data Protection Commission (DPC), Meta's request for permission to use people's data for adverts on Facebook and Instagram was illegal. Meta, the company...