European privacy probes could cost Facebook, report finds

Probes into Facebook’s data practices in Europe may cost the social network financially, a research firm said. Regulators around Europe are investigating the firm’s advertising business, which touts its access to the reams of data Facebook gathers on its users. Much of the effort, led by the Netherlands, is looking at how Facebook uses data from services it owns -- like WhatsApp and Instagram -- to bolster its ability to target advertising. Agencies from Italy, France, Spain, Germany and Belgium have all signed on to the inquiry.

“This situation will play out over the coming months and years, and its impact on Facebook’s ad business could be substantial if the company is forced to limit or curtail some of its targeted advertising activities,” research firm eMarketer wrote in a note. That looming question, as well as the patchwork nature of the region, makes it difficult to imagine Facebook increasing its revenue from Western Europe significantly."