Meta recently faced another privacy violation fine in Europe, prompting a more serious discussion about big tech regulation in Washington.
The Irish data protection authority fined Meta €1.2 billion ($1.3 billion) for mishandling European user data when transferring it to the U.S. This significant fine highlights the importance of ad tech operators prioritizing compliance with such regulations.
While a national data privacy bill is gaining traction, not everyone has fully embraced it yet. The U.S. House Energy & Commerce Committee voted to pass the American Data Privacy and Protection Act, which could have broad implications for data collection, use, and sharing in marketing and other areas.
In this context, U.S. counterparts are lobbying lawmakers across the Atlantic in an effort to influence a multi-state privacy law that could supersede the current patchwork of individual state laws. Although there is still progress to be made before such a law is officially enacted, the American Data Privacy and Protection Act (ADPPA) is the most advanced proposal. Key industry players are actively engaging with the U.S. Capitol to advocate for a unified set of privacy requirements applicable nationwide, similar to the EU’s approach.
As a result of the lack of a federal privacy law in the U.S., various states are taking steps to pass their own comprehensive legislation to protect privacy in the rapidly evolving digital landscape. California, Colorado, Connecticut, Utah, Virginia, and other states are responding to public demands for robust privacy laws.
Meanwhile, the Interactive Advertising Bureau (IAB) and its sister organization, IAB Tech Lab, are leading early compliance and lobbying efforts through various initiatives. Executives from these organizations have engaged in discussions with key supporters of privacy legislation to educate them on industry perspectives.
“If you’re a global media company, then you’re facing a nightmare of cross-compliance,” IAB Tech Lab CEO Anthony Katsur said in an interview with Digiday. “In the internet era, many companies are global by nature… it’s a nightmare from a technical, legal, and consumer experience perspective.”
The IAB highlights the bipartisan support for federal privacy legislation, with draft proposals currently undergoing revisions in Congress. However, it is anticipated that any such legislation will likely be passed after the upcoming general election.
The lobbying influence of industry giants like Alphabet, Amazon, and Meta is well-known and sometimes resented by both the public and industry peers. This dynamic has motivated publisher executives and ad operations professionals to actively engage with key politicians in the U.S. Capitol, aiming to navigate ad tech within established guidelines.
Rob Beeler, a consultant specializing in media owners explains the strategy when speaking with U.S. lawmakers on regulation, “We want to discuss with them the value of having a Federal-level Privacy Legislation versus state-by-state.” He continued,“We’re going to talk about it because we’ve gone through what GDPR does, versus trying to do this at the California, Massachusetts, and Colorado level [of lawmamking].”