The regulator's move could be a major obstacle to the social networking giant's plans.
Germany is about to remind Facebook Inc. that the tribulations of 2018 are far from over. In fact, they're about to get even more real.
The regulator's move could be a major obstacle to the social networking giant's plans. With user growth and engagement stagnating, Facebook is increasingly focusing on improving the value of what it offers advertisers. That means doing a better job targeting ads to individual users in order to generate a better return on investment for brands.
The German measures will likely prohibit the sharing of those cookies, BamS reported. Significantly, if the case made by the regulator is compelling, a wider investigation by the European Union could follow.
Germany is very much the leader on the continent for countries deciding how to approach regulation, and any big change it makes could be the thin end of the wedge.
The German investigation on third-party data sharing started in March 2016, predating the Cambridge Analytica story. Although skepticism towards Facebook has always been strong in Germany, the fallout from the affair has spread the antipathy globally, making other nations more open to tighter rules.
The likely regulation could be a major spanner in the works of Facebook's advertising-machine. Investors would do well to note that the regulatory battles are only just beginning.
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