Meta's entire business model is being challenged in Norway
Norway is fining Meta $150,000 per day for serving targeted ads. The same could happen in Australia, where similar restrictions are under consideration.
A $150,000 fine might not feel like much to Meta. Eating that cost every day for three months, however, may begin to cause a headache.
Meta is facing that penalty in Norway. The country's Data Protection Authority, known locally as Datatilsynet, said on Tuesday that, starting August 14, it would charge Meta 1 million krone (AUD$149,850) daily until the social media giant changes how it serves digital advertising in the country.
That's where a headache may turn into a migraine. Datatilsynet takes issue with Meta serving ads based off information it gleans by tracking users' activities on Facebook, Instagram and Threads. On July 17 Datatilsynet said the company had until August 4 to stop serving targeted ads. The problem for Meta is that "targeted ads" is its central business.
In 2022, Meta made 97% of its $179 billion (USD $117 billion) from selling targeted ads. Businesses would still pay Meta to serve ads without data-driven targeting, but not at the premium the company currently charges.
