European regulation jeopardizes WhatsApp’s advertising monetization model, forcing Meta to freeze its rollout until at least 2026.
WhatsApp, Meta’s instant messaging platform, has postponed the introduction of targeted ads for users in the European Union following direct intervention from the Irish Data Protection Commission (DPC). This slowdown, which only affects European markets, highlights the increasing regulatory pressure on large tech companies regarding privacy and data protection.
Europe resists the "Meta model" of cross-platform advertising
The global launch of ads in the "Updates" tab, present in States and Channels, represents a radical shift in WhatsApp’s philosophy, which has so far been free of direct advertising. However, the initiative has encountered significant scrutiny from EU regulators.
Unlike other markets, data collection for targeted advertising in the EU is much more restrictive. The system proposed by Meta not only collects WhatsApp usage information but also leverages cross-platform data through the Meta Account Center, combining preferences from Instagram and Facebook. This practice, common in the U.S. digital ecosystem, faces regulatory barriers in Europe due to the strict enforcement of the GDPR and the recent Digital Markets Act (DMA).
The Irish DPC, Meta’s main privacy regulator in the EU, has confirmed that the rollout of ads is on hold while the system’s details are examined and discussions occur with data protection authorities from other member states.
Implications for the industry and debate on platform integration
Meta argues that advanced targeting is essential for providing value to advertisers and keeping WhatsApp as a free service. However, the decision to unify advertising profiles across platforms reinforces the perception of data concentration and power in the hands of the company, especially as the European Commission and U.S. authorities conduct active investigations into its dominant position.
For tech companies, the WhatsApp case sets a new precedent: control over data flows and transparent management of consent will be essential requirements for deploying advertising models in Europe. The underlying debate goes beyond advertising in an app; it addresses whether it is acceptable for giants like Meta to interconnect the data of hundreds of millions of users across different platforms in a context where digital sovereignty and privacy protection are strategic priorities.
WhatsApp at the center of the tension between innovation and regulation
As the advertising model advances in other regions, a negotiation period opens in the European Union that could set the stage for future regulatory limitations, not only for Meta but for all transnational digital services.
For now, advertising on WhatsApp remains blocked in Europe. The message for the sector is clear: European regulation is not just a brake but a determining factor in designing the digital economy and the relationship between platforms, data, and users. Meta will need to reinvent its approach if it wants to maintain its presence on the continent without clashing with authorities and the growing social sensitivity to digital privacy.
Source: Noticias Redes Sociales