A Madrid court has mandated that Meta, the parent company of Facebook and Instagram, pay €479 million to 87 Spanish digital media outlets and news agencies for violating the European Union’s General Data Protection Regulation (GDPR). This ruling comes after a lengthy legal battle initiated by the Spanish media association, Asociación de Medios de Información (AMI), which originally sought €550 million in damages.
The lawsuit, filed in late 2023, focused on Meta’s practices from 2018 to 2023, during which the company was accused of engaging in unfair competition by misusing user data. The court found that Meta failed to adhere to regulations regarding user consent in Spain, leading to claims that the company illicitly generated all of its targeted advertising revenue within the EU.
The 15th Madrid commercial court issued its verdict on November 20, 2023, concluding that Meta had indeed breached GDPR and significantly disadvantaged publishers competing for advertising revenue. Despite the ruling, Meta announced its intention to appeal the decision.
During the trial, AMI’s director general, Irene Lanzaco, highlighted the broader implications of the case, stating, “This isn’t a case that affects only AMI’s outlets; it has implications for media worldwide. What’s at stake is the very survival of news media, which is being threatened by the predatory behaviour of a platform like Meta, acting with no regard for our legal framework.”
The complaint emphasized a critical change in the legal basis for processing personal data when GDPR was implemented in 2018. Instead of seeking explicit user consent, Meta shifted to justifying its behavioral advertising practices. While the company reverted to more compliant methods in 2023, the court assessed that Meta’s net revenue in Spain during the contested period amounted to nearly €5.3 billion.
In response to the ruling, a Meta spokesperson stated, “This is a baseless claim that lacks any evidence of alleged harm and wilfully ignores how the online advertising industry works. 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.”
As the case progresses into the appeals process, it underscores the ongoing tensions between major tech companies and regulatory frameworks aimed at protecting consumers and media outlets. The outcome may set significant precedents for how digital platforms operate within the EU’s legal landscape.
