Meta Platforms Slapped With $600M Lawsuit By Spanish Media Group Over Unfair Ad Competition

Mark Zuckerberg-led Meta Platforms Inc. META, the parent company of Facebook, Instagram and WhatsApp, faces a lawsuit from a Spanish media association, accusing the tech giant of engaging in unfair competition within the advertising market.

What Happened: On Monday, it was revealed that a collective lawsuit amounting to EUR 550 million (about $600 million) has been filed against Meta Platforms by a group representing 83 Spanish media outlets, reported Reuters. 

The lawsuit, submitted to a commercial court last Friday, alleges that Meta violated EU data protection rules from 2018 to 2023.

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Media companies, including Prisa and Vocento, argued that Meta’s comprehensive use of personal data from users of its platforms—Facebook, Instagram, and WhatsApp—gives it an unjust edge in designing and delivering personalized ads, thereby constituting unfair competition. 

The companies claim that most of the ad placements by Meta use personal data obtained without explicit client consent, a violation of the EU General Data Protection Regulation in force since May 2018, which necessitates websites to seek permission to retain and use personal data.

Meta did not immediately respond to Benzinga’s request for comments. 

Why It Matters: This lawsuit is part of a continued effort by conventional media to legally challenge tech behemoths in a bid to safeguard their interests. 

Earlier in January this year, it was reported that an Irish watchdog fined Meta €390M for violating user privacy. 

Meanwhile, in August, Meta started blocking news access on its platforms in Canada in response to the Online News Act, which requires platforms like Facebook and Google to negotiate commercial deals with Canadian news publishers for their content. Sundar Pichai’s company has now agreed to an annual payment. 

The current lawsuit underscores the growing global pressure on Meta and other tech giants to adhere to data privacy regulations and engage in fair competition, particularly in the realm of advertising.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.