Meta, the parent company of Facebook and Instagram, has been ordered by a Spanish court to pay 479 million euros (about $552 million) to 87 digital media outlets and news agencies. The ruling from Madrid’s Commercial Court accuses the US-based technology giant of unfair competition and unlawful data processing practices in violation of the European Union’s General Data Protection Regulation (GDPR).
The decision marks one of the most significant legal actions against Meta in Europe, adding to a growing list of regulatory challenges the company faces across the region, Reuters news report said.
Why Meta Was Ordered to Pay Nearly 480 Million Euros
According to the court, Meta unlawfully used personal data for behavioural advertising between 2018 and 2023. By processing user information without proper legal justification, the company gained what judges described as a “significant competitive advantage” in Spain’s online advertising market.
Key findings from the ruling include:
Meta’s behavioural ads on Facebook and Instagram relied on processing personal data without valid user consent
The company shifted from consent to “contract necessity” as the legal basis for data processing when GDPR came into effect in 2018
Regulators later deemed this legal basis inadequate under EU privacy rules
In August 2023, Meta reverted to consent as its legal basis — after five years of non-compliance
The court calculated that Meta made at least 5.3 billion euros in advertising profits during the five-year period. It ruled that the entire amount was obtained in violation of GDPR, forming the basis for compensation.
Meta immediately announced plans to appeal, calling the claims “baseless” and insisting it complies with all data protection laws.
Meta Rejects the Allegations
In a statement, Meta said the ruling ignores how the online advertising industry functions. The company argued that it provides:
Transparent data policies
Clear user choices
Tools for controlling data and ad preferences
Meta says it will challenge the decision and work with regulators during the appeals process.
Part of Broader European Scrutiny of Meta
The Spanish ruling is the latest in a growing series of European investigations and penalties against the company:
Last year, the European Commission imposed a fine of nearly 800 million euros for tying Facebook Marketplace to Facebook, creating unfair trading conditions for competitors
A similar legal claim is underway in France, focused on the same data processing practices
Spain’s government is launching a parliamentary investigation into Meta’s alleged use of hidden tracking mechanisms on Android devices
Prime Minister Pedro Sanchez has directly criticised Meta, citing privacy concerns affecting Spanish citizens
These actions signal rising European frustration with Meta’s advertising model and data handling practices.
What This Means for Digital Media and Online Advertising
The compensation ordered for 87 Spanish publishers highlights the growing pushback from the media industry, which argues that Meta’s data-driven advertising model distorts competition by giving the company unmatched targeting power.
With a similar case in France and active investigations across the region, Meta faces mounting legal risk in one of its most important global markets.
Baburajan Kizhakedath