Post by : Badri Ariffin

In a groundbreaking verdict that transforms the landscape of digital advertising in Europe, a Spanish commercial court has ruled that Meta must pay €479 million to numerous Spanish digital media companies. This decision follows evidence that Meta improperly utilized user data from Facebook and Instagram, circumventing EU data protection laws to gain an unfair advantage in Spain’s online advertising domain.

The hefty sum will be allocated among 87 digital media publishers and news agencies, representing one of the most significant collective financial penalties levied against the corporation in Spain. The court noted that Meta’s practices in behavioral advertising—predicated on assessing user trends, interests, and online actions—granted the company a “considerable competitive edge” over local publishers bound by stricter regulations and limited access to data.

The ruling emphasized that Meta’s management of data breached the EU’s General Data Protection Regulation (GDPR), enabling the company to consolidate its dominance in Spain’s advertising arena. This created an imbalanced competitive environment, leaving compliant publishers at a disadvantage.

As of Thursday, Meta has yet to respond to the ruling, and requests for a statement remain unanswered.

The timing of this ruling coincides with heightened scrutiny for Meta in Spain, as Prime Minister Pedro Sánchez recently announced the initiation of a committee investigation into Meta's possible violations affecting numerous Facebook and Instagram users. This inquiry will further examine how the company collects, processes, and profits from user data.

With this court ruling and rising parliamentary investigation, the pressure on Big Tech in Spain is poised to escalate.

#Global News #AI #Technology