European Union regulators have ruled that Meta Platforms' Facebook and Instagram should not require users to agree to personalized ads based on their digital activity, the Wall Street journal reported Tuesday, citing people familiar with the decision.

The ruling was approved on Monday by a board representing all EU privacy regulators and could limit the data that Meta can access to sell such ads, the report added. Shares of the company were down 2.5% in morning trade.

The board ruled the EU privacy law does not allow Meta's social media platforms to use their terms of service as a justification to permit advertising based on online activity, according to the report.

Meta did not immediately respond to a Reuters request for comment.

The rulings, which have not yet been disclosed publicly, do not directly order Meta to change practices, but call for Ireland's Data Protection Commission to issue public orders that reflect its decisions, along with significant fines, the report said.

Meta's European headquarters is based in Ireland.