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Could Denmark restrict Facebook and Instagram’s use of data for ads?

Danish consumer rights organisation Forbrugerrådet Tænk wants authorities to protect Facebook and Instagram users in the country from targeted ads based on data collected by parent company Meta.

Could Denmark restrict Facebook and Instagram’s use of data for ads?
Denmark is waiting the conclusions of European authorities before deciding whether to ban Meta from using data taken from users' internet behaviour to target ads. Photo: Dado Ruvic/Reuters/Ritzau Scanpix

Tænk wants authorities in Denmark to consider a similar move to that announced in Scandinavian neighbour Norway, which this week said it would no longer allow Meta to use personal data to target its ads.

“We think the legal argument that GDPR rules have been violated is relatively solid. We therefore think that the Danish Data Protection Agency (Datatilsynet) should look into ways it can enforce this against Meta,” political director with Tænk, Uffe Rabe Krag, said to news wire Ritzau.

Norway’s data protection agency said on Monday it would ban Facebook and Instagram owner Meta from using the personal information of users for targeted advertising, threatening a $100,000 daily fine if it continues, news wire AFP reported.

The Norwegian watchdog, also called Datatilsynet, said Meta uses information such as the location of users, the content they like and their posts for marketing purposes.

“The Norwegian Data Protection Authority considers that the practice of Meta is illegal and is therefore imposing a temporary ban of behavioural advertising on Facebook and Instagram,” it said in a statement. 

The ban will begin on August 4th and last three months to give Meta time to take corrective measures. The company will be fined one million Norwegian kroner ($100,000) per day if it fails to comply. 

Information provided by users themselves – such as their gender, age, address and interests – is not included in the Norwegian policy, so Meta can continue to use this information to target its advertising.

But the social media giant may no longer use data it collects from users’ general internet behaviour.

“We will analyse the decision… but there is no immediate effect on our services,” Meta told AFP in a statement.

The temporary Norwegian ban represents a sensible step, Krag argued. A permanent ban would need to come from authorities in Ireland, where Meta has its European headquarters, he noted.

“It’s a very drastic way to conduct marketing, collecting extreme amounts of data about all of us,” he said.

“This can give problems with the balance of power between company and consumer. If a company knows everything about me, it has a better chance of influencing me to make a purchase,” he said.

Ireland’s data protection authority DPC last year concluded that Meta was not authorised to use personal data for behaviour-targeted advertising. Irish authorities are yet to issue any orders requiring the company to change practice, with assessment of the case due to conclude by mid-August.

Meta suffered another major setback earlier this month when the European Court of Justice (ECJ) rejected its various workarounds and empowered antitrust regulators to take data privacy issues into account.

Danish representatives on Tuesday took part in talks over the issues at the EU’s European Data Protection Board.

A legal specialist with the Danish Data Protection Agency said “all options” could be considered in Denmark, but that authorities would await the Irish ruling.

“We are looking at all the options we have. But we expect the conclusion of the Irish authorities to reflect the shared position of the European Data Protection Board. And we expected it to come soon,” IT security and legal specialist Allan Frank of the Danish Data Protection Agency told news wire Ritzau.

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TECH

Danish streaming platform to block account sharing

Denmark’s streaming service Viaplay is to follow in the footsteps of international competitors Netflix and Disney by blocking subscribers from sharing their passwords.

Danish streaming platform to block account sharing

In announcing its results for the first quarter of 2024, Viaplay’s director Jørgen Madsen Lindemann said that “more extensive” measures would be put in place this summer to stop login sharing from different locations.

The company estimates around a third of its users share their login.

“We were surprised when we looked into the numbers and got a better insight into the actual scope of this,” Lindemann said.

“It’s something we have to stop,” the director added.

The streaming market, including Viaplay, is under general financial strain, making the end of password sharing across all providers an inevitability, according to an expert.

“It’s obvious that you would go after the areas where you can see extra revenue. Here, I see prevention of login sharing to be a decidedly low-hanging fruit,” Claus Bülow Christensen, a media advisor and the founder of the Copenhagen Future TV Conference, told newswire Ritzau.

Netflix introduced a block on password sharing in 2023, followed shortly afterwards by Disney+. The latter company has since reported an increase in subscribers by some 30 million.

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