Spanish Court Orders Meta to Pay EUR542 Million to Local Media Over Data Practices

A Spanish court has imposed a substantial financial penalty on Meta, the parent company of Facebook, requiring the technology giant to pay EUR542 million to a collective of Spanish digital media organizations. This decision follows findings that Meta's handling of user data for targeted advertising violated competition regulations and provided the company with an undue market advantage.

The legal action was initiated by the Asociación de Medios de Información (AMI), a group representing over 80 digital media outlets in Spain. The dispute centered on Meta's approach to user consent following the introduction of the European General Data Protection Regulation (GDPR). According to the court, Meta required users to accept updated terms and consent to the use of their personal data for advertising purposes or to leave the platform entirely. This policy remained in effect until August 2023, at which point Meta revised its practices.

The court determined that Meta's data-driven advertising operations generated significant revenue within Spain, estimating that the company earned at least EUR5.3 billion in advertising income during the relevant period. The fine includes EUR479 million in compensation and more than EUR60 million in accrued interest. The calculation was based on figures provided by AMI, as Meta did not submit its own Spain-specific revenue data during the proceedings.

Media organizations argued that Meta's lack of individual opt-out mechanisms for targeted advertising infringed on user rights and created an uneven playing field in the digital advertising sector. By not allowing users to selectively decline personalized ads, Meta was found to have breached competition laws and secured an unfair advantage over local media companies that adhered to stricter compliance standards.

This court decision may have wider implications beyond Spain. Observers noted that similar legal challenges regarding Meta's advertising and data practices are underway in other European countries, such as France. The Spanish ruling could influence outcomes in these cases and prompt further scrutiny of major technology platforms operating within the European Union.

While Meta has not publicly commented on the ruling, it is expected that the company will appeal the court's decision. The case highlights ongoing tensions between global technology corporations and national regulatory bodies over data privacy, competition, and the fair distribution of advertising revenue in the digital marketplace.

The ruling also underscores the growing efforts by European media organizations to seek compensation for what they perceive as unfair competitive practices by large technology firms. As digital advertising continues to play a crucial role in media funding, the outcome of this and similar cases could significantly impact the financial landscape for both international tech companies and local media publishers across Europe.