By Sam Schechner

A top European Union privacy regulator ruled that Meta Platforms Inc. can't use its contracts with Facebook and Instagram users to justify sending them ads based on their online activity, delivering one of the bloc's biggest blows yet to the digital advertising industry.

Meta, the parent of Instagram and Facebook, said it disagrees with the ruling and plans to appeal it. The ruling was announced Wednesday by Ireland's Data Protection Commission.

The agency imposed fines of 390 million euros ($414 million) on Meta, saying that the company violated EU privacy laws by saying such ads are necessary to execute contracts with users.

Litigation could take years, but if the decisions are upheld, they could mean that Meta will have to allow users to opt out of ads that are based on how individual users interact with its own apps--something that could hurt one of its core businesses.

Write to Sam Schechner at sam.schechner@wsj.com

(END) Dow Jones Newswires

January 04, 2023 10:14 ET (15:14 GMT)

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