Sam Schechner
Appearances
WSJ What’s News
The Case for Trump’s Tariffs
This is the end point of what's been years of wrangling between Meta and the EU over its advertising business model. And it really isn't even about the fine that may come in this case. It's really about the business model. And effectively, what Meta is contesting is this idea that it might have to offer a free version of its service without highly targeted advertising.
WSJ What’s News
The Case for Trump’s Tariffs
They've already, kind of in an attempt to settle this case, rolled out something they call less personalized ads in Europe. And Meta is concerned that the EU is going to push them to go even further than that, to use even less data. And the problem is that those ads are sold for much less revenue.
WSJ What’s News
The Case for Trump’s Tariffs
And so if a significant number of people in the EU sign up for a free version of Instagram or Facebook without highly targeted ads, it could be a significant drag on the company's revenue.