A Spanish court has imposed a significant fine on Meta Platforms, the parent company of Facebook and Instagram, for violating competition and privacy rules. The ruling, which orders Meta to pay €479 million in compensation, is the result of a long-running dispute with over 80 digital media outlets. The outlets, represented by the association AMI, accused Meta of exploiting its position in the online-advertising market by processing user data for behavioral advertising without complying with safeguards.
The court found that Meta’s practices, which took place between May 2018 and July 2023, gave the company an unfair advantage over domestic outlets. The judges noted that Meta’s “illicit treatment of this enormous quantity of personal data” generated at least €5.3 billion in ad revenue during the period in question. The company has since shifted to a user-consent basis for its advertising practices, starting in August 2023.
Meta has rejected the decision, calling it “baseless” and arguing that there is no evidence of harm to publishers. The company plans to appeal the ruling, which it claims misrepresents the digital-advertising industry. The fine is the latest development in a broader clash between EU regulators and Big Tech platforms over digital competition.
The European Commission has previously fined Meta nearly €800 million over practices linked to Facebook Marketplace, and earlier this year accused the company of breaching the bloc’s Digital Markets Act. The current ruling may set a precedent for similar cases, including one underway in France. AMI has welcomed the decision, which it believes could have significant implications for the online-advertising industry.
The dispute highlights ongoing concerns about the use of personal data in online advertising and the need for greater transparency and accountability from tech companies. As regulators continue to scrutinize the practices of Big Tech platforms, companies like Meta will be under increasing pressure to demonstrate compliance with competition and privacy rules. The outcome of Meta’s appeal and the impact of the ruling on the online-advertising industry will be closely watched in the coming months.