Meta Hit with USD550M Fine in Spain Over Unlawful Data Practices
The verdict concludes a protracted legal battle involving over 80 digital media companies that accused Facebook's parent entity of exploiting its dominance in the online advertising sector. AMI, the association representing these outlets, filed suit in 2023, contending that Meta's advertising practices between May 2018 and July 2023 violated competition and privacy regulations by providing the firm with unfair data-driven leverage.
Thursday's ruling from a commercial court in Madrid compelled the company to remit €479 million (approximately $550 million) in damages, concluding it had processed information from Facebook and Instagram users for behavioral advertising while failing to comply with competition or data protection requirements. AMI declared the decision could establish precedent for parallel cases, including ongoing litigation in France.
According to media, the judges determined Meta's "illicit treatment of this enormous quantity of personal data" granted it a competitive advantage that domestic publishers "could not match."
The court additionally observed that Meta reverted to a user-consent framework in August 2023 and calculated the company had generated at least €5.3 billion (roughly $5.7 billion) in advertising revenue throughout the disputed timeframe.
Meta dismissed the ruling and announced plans to appeal, characterizing the case as "baseless" and insisting there is "no evidence of alleged harm" to publishers. The corporation argued the judgment misrepresents how the digital advertising industry functions.
The decision intensifies a widening confrontation between EU regulators and Big Tech platforms over digital competition standards. Last year, the European Commission fined Meta nearly €800 million (around $870 million) over tactics connected to Facebook Marketplace, and earlier this year, regulators charged the company with violating the bloc's Digital Markets Act through a "pay or consent" advertising model requiring users to accept advertisements or subscribe for a fee.
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