By Asmita - Nov 29, 2024
Meta Platforms, the parent company of Facebook, faces a €551 million lawsuit filed by Spanish media organizations, accusing Meta of unfair competitive practices in advertising through EU data protection breaches. The trial, scheduled for October 2025, highlights tensions between traditional media and tech giants like Meta regarding fair compensation for content use and distribution. Spain's media industry seeks to address the alleged exploitation of user data by tech companies, underscoring challenges in the digital advertising landscape.
Petar Adžaga via Wikimedia
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Meta Platforms, the parent company of Facebook, is set to face a significant trial in October 2025 in Spain, stemming from a €551 million ($582 million) lawsuit filed by over 80 Spanish media organizations. The lawsuit, initiated by the AMI media association, accuses Meta of engaging in unfair competitive practices within the advertising sector. The complaint alleges that Meta systematically breached EU data protection regulations between May 2018 and July 2023, thereby gaining an illegitimate competitive advantage over traditional media outlets that comply with these laws. The trial is scheduled for October 1 and 2, as confirmed by the 15th Madrid commercial court.
The plaintiffs argue that Meta's extensive use of personal data from users across its platforms—Facebook, Instagram, and WhatsApp—enables the company to create highly targeted advertisements. This practice is viewed as unfair competition, as it allows Meta to offer advertising spaces based on data obtained without proper consent from users. The AMI association claims that this not only harms their revenue but also undermines the integrity of the media industry by exploiting user data without compensation to content creators. Prominent publishers involved in the lawsuit include Prisa, which owns El País, and Vocento, known for publishing ABC Newspaper.
In a related development, Spain's television and radio broadcasters' associations have also filed a separate lawsuit against Meta, seeking €160 million ($169 million) for similar reasons. These legal actions underscore the ongoing struggle of traditional media against technology giants that dominate the digital advertising landscape. Media organizations contend that they should receive fair compensation for the use and distribution of their content by platforms like Facebook and Instagram. This situation reflects broader tensions between legacy media and tech companies as they navigate revenue models in an increasingly digital world.
Meta has denied any wrongdoing regarding the allegations made against it. During preliminary hearings, the company’s legal representatives argued that it has not violated EU data protection rules and does not use personal data for personalized advertising purposes. This defense highlights a critical aspect of the case: whether Meta's practices constitute unfair competition under existing European regulations. As the trial approaches, it will serve as a significant test case for how tech companies manage user data and their responsibilities towards traditional media outlets in Europe. The outcome could have far-reaching implications for both the tech industry and media organizations navigating this complex landscape.