Meta ordered to pay $550 million to Spanish media outlets

The ruling on publishers’ claims against the tech giant’s ad business found that the company had violated both competition and privacy rules

RT: © Getty Images / SOPA Images / Contributor

Spain has ruled that the US social media giant Meta Platforms pay a hefty sum after finding that the company had gained an unlawful advantage through its data practices. 

The decision follows a long-running dispute involving over 80 digital media outlets which had accused Facebook’s parent company of exploiting its position in the online advertising market.
AMI, the association representing the outlets, sued in 2023, arguing that Meta’s ad practices between May 2018 and July 2023 breached competition and privacy rules by giving the company an unfair data-driven advantage.

On Thursday, a commercial court in Madrid ordered the company to pay €479 million (around $550 million) in compensation, finding that it had processed data from Facebook and Instagram users for behavioral advertising without complying with competition or data protection safeguards. AMI has said the ruling could set a precedent for similar cases, including one underway in France.

According to Associated Press, the judges said Meta’s “illicit treatment of this enormous quantity of personal data” gave it a competitive edge that domestic outlets “could not match.”

The court also noted that Meta returned to a user‑consent system in August 2023 and estimated that the company had generated at least €5.3 billion (around $5.7 billion) in ad revenue over the period in question.

Meta rejected the decision and said it would appeal, calling the case “baseless” and arguing there is “no evidence of alleged harm” to publishers. The company said the ruling misrepresents how the digital advertising industry operates.

The ruling adds to a broader clash between EU regulators and Big Tech platforms over digital competition. Last year, the European Commission fined Meta nearly €800 million (around $870 million) over practices linked to Facebook Marketplace, and earlier this year, regulators accused the company of breaching the bloc’s Digital Markets Act with a “pay or consent” advertising model that required users to accept ads or pay a subscription fee.