Meta Threatens to Block Accounts if Personal Information Is Not Provided
Forced Data Provision for Personalized Ads
Facebook and Instagram Update Announced
Account Suspension for Non-Consent Users
Potential Violation of Personal Information Protection Act
[Asia Economy Reporter Lee Seung-jin] Meta, the operator of social networking services (SNS) Facebook and Instagram, has announced an update to its privacy policy scheduled for the 26th. The update, which enforces the provision of personal information for personalized advertising, has sparked controversy as Meta stated that accounts will be suspended if users do not agree to the update.
On May 26, Meta revised its privacy policy and terms of service and notified users with a notice focusing on obtaining consent for personal data collection. The notice clearly states that "after the 26th, users must agree to the update to use their accounts," effectively forcing users to accept the revised terms.
The core of the revised terms is "personalized advertising." Meta requires △ collection and use of personal information for displaying personalized ads △ sharing personal information with government agencies and investigative bodies △ transferring personal information to global branches, data centers, and partner businesses △ location-based services. Article 2 of the revised terms, "How Facebook services are funded," explicitly states that users who do not pay service fees must view advertisements. It particularly emphasizes that ads use activities within Facebook and Instagram, phone numbers or email addresses, activities on other websites, and location information.
This update by Meta follows changes in privacy policies by Apple and Google since last year, which have prevented user data from being passed to third parties. Until now, advertisers have purchased advertising IDs assigned by Google to smartphones to provide personalized ads.
Facebook and Instagram are representative services that have provided personalized ads through advertising IDs. Meta generates over 95% of its revenue from personalized advertising. In a recent earnings report, Meta projected that revenue from Facebook, Instagram, and others would decrease by $10 billion (12 trillion KRW) this year due to Apple's policy changes. In fact, operating profit for the first quarter of this year was $8.5 billion, down 25% from the previous year. Furthermore, with Google also changing its policies, Meta's revenue has taken a direct hit.
If Meta suspends accounts of users who do not agree to this update, it is highly likely to violate the Personal Information Protection Act. The government amended the Personal Information Protection Act in 2020 to include a provision stating that "Information and communication service providers shall not refuse to provide services on the grounds that users did not provide personal information beyond the minimum necessary." The Personal Information Protection Commission is currently investigating Meta regarding this matter.
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The National Assembly is also taking action. On the 22nd, Justice Party lawmakers Jang Hye-young and Bae Jin-gyo will hold an emergency discussion on Meta's privacy policy and continue discussions on the right not to consent to the privacy policy. The discussion will include participation from the Lawyers for a Democratic Society, the law firm Jihyang, and the People's Solidarity for Participatory Democracy to discuss ways to protect information rights.
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