A commercial court in Madrid has handed down a landmark judgment against US tech giant Meta, ordering the parent company of Facebook, Instagram, and WhatsApp to pay a massive compensation package to Spanish media outlets.
The court ruled on Thursday that Meta must pay €479 million ($552 million) in damages for “unfair competition,” along with an additional €60 million in accrued interest. The verdict concludes a high-profile lawsuit filed by the Association of Information Media (AMI), the country’s main press association.
Systemic Violation of EU Rules
The lawsuit, initiated in 2023, centered on allegations that Meta systematically violated European Union data protection regulations between May 2018 and July 2023. EU law explicitly requires digital platforms to obtain clear user consent before utilizing personal data to generate targeted advertising.
In its ruling, the Madrid court agreed with the plaintiffs, stating that by ignoring these protocols, Meta gained a “significant competitive advantage” in the digital advertising market. This allowed the tech giant to dominate ad sales while traditional media companies adhered to the stricter legal framework.
“Survival of News Media”
The compensation will be distributed among 87 media outlets represented by AMI. These include major publishing groups such as Prisa (owner of El País), Vocento (publisher of ABC), and Unidad Editorial (owner of El Mundo).
Irene Lanzaco, Director General of AMI, hailed the case as pivotal not just for Spain, but for the global media landscape.
“This isn’t a case that affects only AMI’s outlets; it has implications for media worldwide,” Lanzaco stated at the start of the trial. She emphasized that the lawsuit was about the “survival of news media,” which she described as being threatened by the “predatory behavior” of platforms acting without regard for the law.
Meta’s Defense Rejected
During the trial, Meta’s legal team argued that the media group’s claims were “unsupported by evidence.”
Defense lawyers contended that the company’s dominance in advertising was driven by superior algorithms rather than the specific use of personal user data.
However, the judge dismissed these arguments in favor of the media association, which had originally sought €551 million in damages.
Mounting Legal Pressure
This ruling marks a significant escalation in the regulatory pressure Meta faces in Spain.
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Broadcaster Lawsuit: A separate group of Spanish radio and television stations has launched a parallel lawsuit against Meta for similar reasons, seeking an additional €160 million in damages.
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Government Probe: On Wednesday, Prime Minister Pedro Sánchez announced that the government would investigate Meta for allegedly violating the privacy of millions of users, summoning the tech giant to answer questions before parliament.
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