In a landmark decision that could reshape digital advertising across Europe, the Belgian Court of Appeal has ruled that the tracking-based advertising systems used by tech giants including Google, Microsoft, Amazon, and X (formerly Twitter) have no legal basis under EU law.

The ruling, announced on May 15, 2025, specifically targets the Transparency and Consent Framework (TCF) developed by the Interactive Advertising Bureau (IAB), which serves as the foundation for most cookie consent banners across the web. You’ve likely encountered these banners with their often confusing options for thousands of “partners” collecting your data.

According to the Irish Council for Civil Liberties (ICCL), the court confirmed that the data captured through the TCF framework constitutes personal data and is therefore subject to GDPR regulations. However, the court found that the current implementation fails to meet GDPR requirements.

“This ruling confirms what privacy advocates have long argued – that the current ecosystem of tracking-based advertising operates without proper legal foundation in Europe,” said Dr. Johnny Ryan, Senior Fellow at the ICCL.

While the decision represents a significant legal victory for privacy advocates, its practical impact may be limited. The ruling doesn’t ban cookie banners themselves, which will continue to appear on websites. Instead, it clarifies that the data collected through these mechanisms is personal data subject to GDPR protections.

For businesses relying on targeted advertising, this ruling creates immediate compliance challenges. Companies using TCF-based consent mechanisms may need to reconsider their advertising strategies or face potential penalties under GDPR.

For consumers, the immediate effect will be minimal – cookie banners will remain, though their underlying mechanisms may change. The long-term implications, however, could be substantial if the ruling eventually forces a broader shift away from tracking-based advertising models.

As the digital advertising industry absorbs this ruling, both advertisers and publishers face a period of uncertainty. Major platforms will likely adapt their systems while continuing to challenge aspects of the decision, but the era of unchecked tracking-based advertising in Europe appears to be drawing to a close.