Spanish media outlets have won a legal case against Meta, the parent company of Facebook and Instagram, after a Madrid court ordered the technology company to pay 481 million euros ($554 million) in damages. The decision comes after 81 Spanish media organizations brought a lawsuit alleging that Meta used personal data from internet users in violation of European law to gain an unfair advantage in online advertising.
The mercantile court No. 15 of Madrid found that Meta’s use of large amounts of personal data gave it an edge over Spanish digital media companies. “The illicit treatment of this enormous quantity of personal data meant Meta had an advantage that Spanish online media could not match,” the court stated. “Meta’s actions harmed the online advertising revenues of Spanish digital media outlets.”
According to the ruling, Meta violated European regulations for five years before updating its consent practices in 2023 to comply with EU law. The General Data Protection Regulation (GDPR), which took effect in 2018, requires companies handling user data within Europe to follow strict privacy protections.
Meta responded by saying it will appeal the decision and described the claim as unfounded. “This is a baseless claim that lacks any evidence of alleged harm and willfully ignores how the online advertising industry works,” Meta said in a statement. “Meta complies with all applicable laws, and has provided clear choices, transparent information and given users a range of tools to control their experience on our services.”
This is not the first time Meta has faced penalties under EU data protection rules. In 2022, Irish regulators fined Meta 265 million euros for similar violations.
The Madrid court also noted that its ruling could affect other ongoing cases across Europe, including one currently underway in France.
In related developments, Spain’s financial markets supervisor recently fined Elon Musk’s X platform five million euros for allowing advertisements from an unauthorized cryptocurrency platform accused of fraudulent promotion.
