Meta slapped with $554M fine for unfair competition in Spain
What's the story
A Spanish court has ordered tech giant Meta to pay €481 million ($554 million) in damages to 87 digital media companies. The ruling comes after the court found Meta guilty of unfair competition practices and violating European Union data protection regulations. The compensation amount is to be distributed among the affected media outlets, which include press publishers and news agencies across Spain.
Legal challenge
Meta's data practices under scrutiny
The court's ruling is primarily related to Meta's alleged misuse of personal data for behavioral advertising on its platforms, Facebook and Instagram. The judge ruled that by illegally processing user data, the US tech giant had gained an unfair advantage in Spain's online advertising market. This practice was found to be a violation of the EU's General Data Protection Regulation (GDPR) and Spain's antitrust law.
Appeal process
Meta's response and future implications
Meta has rejected the court's decision and plans to appeal against it. A spokesperson for the company said, "This is a baseless claim that lacks any evidence of alleged harm and wilfully ignores how the online advertising industry works." The ruling could also have implications for other legal cases across Europe, including one in France where Meta is facing similar allegations.
Previous breaches
Meta's past GDPR violations and potential fines
The Spanish court found that Meta had violated European regulations for five years, until it updated its consent practices in 2023. In those five years, the judge estimated that Meta made at least €5.3 billion in profits from advertising, all obtained in violation of the GDPR. The ruling is just the latest in a string of fines against Meta in Europe over similar issues.