Spanish Court Orders Meta to Pay €479 Million for Data Misuse and Unfair Competition
A Spanish court has ordered Meta, the parent company of Facebook and Instagram, to pay €479 million ($552 million) to 87 Spanish digital media outlets and news agencies. The ruling, issued by Madrid’s Commercial Court, found that Meta gained an unfair competitive edge in the online advertising market by unlawfully using personal data for behavioural advertising.
The court determined that Meta’s data processing practices violated European Union data protection laws, allowing the company to target users more precisely and attract advertisers unfairly. The compensation will be distributed among Spanish publishers affected by what the court described as Meta’s “significant competitive advantage.”
Meta has not yet commented on the ruling.
Data Protection and Advertising at the Centre of the Case
The decision marks one of the most substantial financial penalties imposed on a global technology company in Spain for breaches of data privacy and competition rules. According to the court, Meta used personal information collected through Facebook and Instagram to build detailed behavioural profiles of users, which it then leveraged for targeted advertising.
This practice, the court said, undermined fair competition because Spanish media outlets could not match Meta’s data-driven ad targeting without similar access to user data. By doing so, Meta effectively distorted Spain’s digital advertising landscape.
The ruling underscores the European Union’s strict stance on data protection, particularly under the General Data Protection Regulation (GDPR), which restricts how companies collect and use personal data without explicit consent.
Government Moves to Intensify Scrutiny
Spanish Prime Minister Pedro Sánchez announced on Wednesday that a lower house parliamentary committee would open an investigation into Meta for potential privacy violations affecting Facebook and Instagram users in Spain. The inquiry aims to assess whether Meta’s data practices continue to breach national and EU privacy standards.
The case reflects growing European efforts to rein in the power of major technology companies, especially in the digital advertising sector. Authorities across the EU have repeatedly fined Meta for privacy breaches, with ongoing investigations in several member states.
The Spanish ruling could set a precedent for similar claims by media organisations elsewhere in Europe seeking compensation for lost revenue due to unlawful data use.
with inputs from Reuters
