Meta Platforms is facing legal scrutiny in Europe after announcing plans to use Facebook and Instagram user data to train its generative AI systems. Austrian privacy group noyb (None of Your Business), led by well-known advocate Max Schrems, has sent a cease and desist letter to Meta. The group plans to file a legal injunction that could lead to sweeping consequences, including major financial penalties.
Meta says the changes will take effect on May 27, 2025, unless users actively opt out.
Privacy group warns of massive financial risk
Noyb argues that Meta’s data collection practices violate European privacy laws. The group specifically targets the company’s default opt-in policy, which it claims is incompatible with the General Data Protection Regulation (GDPR). Under GDPR, user consent is required unless a valid legal basis is present.
The organization warns that Meta could face:
- A court-ordered injunction blocking its AI training in the EU
- A class action lawsuit under the EU Collective Redress Directive
- Billions in damages, with over 400 million European users potentially eligible for claims
Schrems questioned Meta’s legal argument. “If Meta says its ‘legitimate interest’ is making money, that’s not a valid legal reason to override privacy rights,” he said. “We are surprised the company is taking such a massive risk.”
In response, Meta claims its AI development is legally justified. The company says it has a legitimate interest in training AI tools and that it complies with EU regulations.
To address concerns, Meta says it:
- Will not use private messages
- Will not include data from users under 18
- Will offer an opt-out option via an online form
Meta also said that the European Data Protection Board supported its legal position in April. However, not all regulators agree. This week, a regional authority in North Rhine-Westphalia, Germany, officially objected to Meta’s plans.
Meta is investing heavily in artificial intelligence. The company is embedding AI across Facebook, Instagram, WhatsApp, and its advertising platforms. Any disruption in its ability to train AI models could slow product development or limit its ability to compete in global markets.
Potential risks for Meta include:
- Regulatory restrictions on AI products in the EU
- Loss of user trust in key European markets
- Legal costs and damages that could total billions
Currently, Meta’s stock (NASDAQ: META) is trading at $656.03. Analysts forecast an average 12-month target of $702.99, though valuation models from GuruFocus suggest it may be overpriced due to mounting risks.
What’s next?
If noyb files its injunction and wins in court, Meta may be forced to halt its AI training efforts across Europe. In that scenario, the company could also face one of the largest data-related consumer lawsuits ever filed in the EU.
Noyb is encouraging other advocacy groups to take similar action. The legal outcome could set a precedent for how Big Tech companies use personal data for AI across regulated markets.
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