Author: Ginny Marvin, Article Source: Marketing Land https://goo.gl/1n8pJr
Phasing out of data brokers marks a shift as Facebook faces mounting scrutiny and regulatory pressure. Here’s what’s changing why and when.
here are a couple of things going on that Facebook addressed in an email to advertising partners on Thursday.
One is the Cambridge Analytica scandal that has put Facebook in the crosshairs of just about every stakeholder group but advertisers so far. Last week, the company announced some new limits to the user data that apps can access as part of its response to the crisis that isn’t going away.
The second factor fueling this change is GDPR.
The General Data Protection Regulation will go into effect May 25, 2018 — less than two months from now. The broad regulation is aimed at ensuring people have control over their personal data and that companies gain explicit consent for data collection and sharing from users, among other things.
GDPR will apply to all companies that process personal data of EU citizens, regardless of where they reside. That means it applies to US companies that process data of EU citizens, whether they live in the States or elsewhere. Violators could be fined up to 4 percent of their company’s global revenue.
It’s a big deal and will affect how third-party data is used (or not used) throughout the digital advertising ecosystem, and not just in the EU. (For more on the law and how it may affect your business, see our GDPR guide and ongoing GDPR coverage on our sister site MarTech Today.)