European Union rules will soon require Big Tech firms to provide clear labeling for political advertising on their platforms, disclosing information about the source of funding, the amount spent, and the specific elections targeted. This move, which has been approved by EU countries and European Parliament lawmakers, aims to enhance transparency and accountability for social media giants like Google and Meta Platforms. Violations of these rules can result in fines of up to 6% of an ad provider’s annual revenue.
Additionally, these rules will prevent entities from outside the EU from sponsoring political ads in the three months leading up to an election or referendum. They also include a prohibition on ads that use profiling based on factors like ethnicity, religion, or sexual orientation.
MEP Sandro Gozi, a key figure in the European Parliament, expressed that these new rules will make it more challenging for foreign actors to spread disinformation and meddle in the EU’s democratic processes.
The agreement on these regulations was reached after negotiations between EU countries and lawmakers, following a proposal by the European Commission last year. All online political ads will be accessible in an online ad repository, ensuring greater transparency. Furthermore, the rules are intended to create a favorable environment for transnational campaigning in preparation for the upcoming European Parliament elections.