Meta faces a record fine of 542 million for illegally using data in digital advertising

Meta will have to pay 542 million to Spanish media outlets for using data without consent and gaining an advantage in digital advertising.

Meta has been ordered to pay €542 million in compensation to 87 Spanish publishers and agencies for unfair competition in the digital advertising market, according to a ruling by the Commercial Court No. 15 of Madrid. The judge determined that the technology gained a significant advantage by using users’ personal data without proper consent, violating the General Data Protection Regulation (GDPR).

The ruling comes after a lawsuit filed in 2023 by more than 80 publications associated with AMI, including some of Spain’s leading newspapers, as well as Europa Press and Radio Blanca, which have also received individual compensation.

Personalized Advertising Based on “Illicit” Data

The ruling concludes that Meta exploited user data between 2018 and 2023 without a valid legal basis after unilaterally changing explicit consent to a supposed “contractual necessity.”

This privileged access to millions of profiles fueled its behavioral advertising business, allowing it to offer advertisers a level of segmentation that Spanish media outlets could not match while complying with the law.

“It is Meta that must adapt to the GDPR, not the GDPR to Meta,” the ruling states, which considers it proven that this conduct directly affected the advertising market and the sustainability of professional journalism.

The judge used as a reference a study by the CNMC (National Markets and Competition Commission) that demonstrates the competitive imbalance created. The ruling adds that Meta does not file its accounts in Spain during the analyzed period, accepting as valid the data provided by AMI (Association of Media Companies) which estimates €5.281 billion in advertising revenue attributable to the illicit use of data.

A Precedent That Could Reach Europe

AMI describes this ruling as a «historic legal victory» and warns that it formally recognizes the economic harm, the democratic impact, and the disruption of the rules of the game in digital advertising.

The case could influence similar proceedings in France and the lawsuit currently active in Escala by UTECA and AERC, which are claiming more than €160 million from Meta for the same reason.

For its part, Mark Zuckerberg’s company has expressed its disagreement with the ruling and confirmed that it will appeal: «This is an unfounded lawsuit that deliberately ignores how the online advertising sector works. Meta complies with all applicable laws and offers users tools to control their experience.»

In this way, this ruling once again puts at the center of the debate what business model is viable in a digital ecosystem dominated by platforms, and how far regulators and courts are willing to go to protect competition and media pluralism.

Source: www.marketingdirecto.com