May 15, 2023
Proposed EU regulations that aim to increase transparency in political advertising, including revealing the groups behind online campaigns and their targeted users, have left Meta considering a ban on political advertising in Europe.

Meta, the parent company of Facebook and Instagram, is considering a ban on political advertising across its platforms in Europe. The move comes as EU lawmakers are drafting new laws that will require large internet groups to disclose more information about the political groups behind online campaigns and the users they are targeting. Meta is concerned that the definition of political ads under the new regulations will be so broad that it will be easier to refuse all paid-for political campaigns. This blog will examine the new EU law proposals, concerns by Meta group, its potential impact on social media companies, as well as what lawyers and law students should know about these developments.

The New EU Law Proposal

The European Union is proposing new regulations aimed at increasing transparency in political advertising online. The new rules will require large internet companies to provide more information about the political groups behind online campaigns and the users they are targeting. The proposed regulations define political advertising as the ‘promotion of a message by a political actor or one that is liable to influence the outcome of an election.’ Under the new rules, companies will be required to show how much political ads cost, who paid for them, and how many people viewed the content. The European Commission, European Parliament, and EU member states are expected to agree on a final definition of political advertising by June 5th.

The proposed rules also aim to limit Big Tech groups’ access to user data to target political advertising, but there is still disagreement among regulators in Brussels over how this will be achieved. The proposed regulations represent a significant shift in how online political advertising is regulated and are aimed at countering misinformation and manipulation during elections.

Meta’s Concerns

Meta, the parent company of Facebook and Instagram, is considering a ban on political advertising in Europe following concerns that forthcoming EU regulations will make it difficult to comply with the new rules. Their main concern is that the definition of political ads under the new regulations will be so broad that it will be easier to refuse all paid-for political campaigns on the company’s sites. Additionally, users have shown little interest in political content, and the revenues generated from political ads are small compared to Meta’s wider business. However, some Meta executives are against a ban on political ads, and conversations are ongoing. The final decision will ultimately depend on the EU’s definition of political ads under its new regulations.

Meta’s concerns highlight the challenges faced by social media platforms in regulating political advertising and countering misinformation and manipulation during elections. Meta’s CEO, Mark Zuckerberg, has previously resisted fact-checking political ads, arguing that private companies should not be an “arbiter of truth.” Nonetheless, Meta temporarily halted political advertising during the US 2020 presidential election and other significant votes.

Implications for Social Media Companies

If the definition of political ads is broadened as expected, it will be challenging for these platforms to comply with the new rules, which will require more transparency in online campaigning. Additionally, the regulations may limit these companies’ access to user data, which they rely on to target political ads effectively. This could mean that social media platforms will have to change their approach to political advertising, which could impact their business model and bottom line.

The proposed fines for breaches of the regulations could be a significant financial burden for these companies. Given that social media platforms have been criticised in the past for not doing enough to prevent misinformation and election manipulation, the new regulations may force them to take more responsibility for the content on their platforms.

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Implications for the Legal Sector

Media lawyers will need to stay informed about changes in political advertising regulations to ensure that their clients’ advertising campaigns comply with the new rules. For instance, they may need to conduct due diligence interviews with clients to know about their political campaigns and keep them updated with the new law.

Lawyers specialised in IP, data protection and privacy law may be involved in reviewing the policies and procedures of social media companies to ensure they comply with the new regulations. This may include a review of how user data is collected, used, and protected to ensure compliance with the new rules.

Discussing the topic in an interview

Aspiring lawyers and law students should keep an eye on the changing landscape of political advertising regulations, particularly in the digital sphere. Understanding the regulatory environment is critical for aspiring legal practitioners who will be advising clients on advertising strategies and ensuring their compliance with the new rules.

In addition, being well-versed in the intersection of technology, data protection, and political campaigning will be increasingly important for lawyers in the digital age. The proposed EU rules on political advertising represent a significant development in this area, and staying up to date on these changes will be essential for aspiring lawyers looking to work in areas such as media law, data protection, and privacy law. Familiarity with the regulatory frameworks in different jurisdictions will also be crucial, as the legal landscape for political advertising continues to evolve globally.

The proposed EU law changes to political advertising regulations online have brought significant challenges to social media companies like Meta. With the new rules aiming to increase transparency and limit Big Tech’s access to user data for political advertising, it’s no wonder that Meta is considering a ban on political advertising in Europe. The potential broadening of the definition of political ads under the new regulations could be a significant challenge for social media companies, and the fines for non-compliance could be costly. For lawyers, this represents an opportunity to stay informed and up-to-date on the changing regulatory landscape of political advertising, especially in the digital sphere. Aspiring lawyers and law students must keep an eye on these changes to be better equipped to advise clients on advertising strategies and ensure their compliance with the new rules.

By Wing Han Chan 

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