A Spanish court has ordered Facebook owner Meta (META.O) to pay 479 million euros (approximately Ksh.71.5 billion) to 87 Spanish digital media outlets, ruling that the tech giant engaged in unfair competition and violated European Union data protection laws. The decision, handed down by Madrid’s Commercial Court, comes as part of a broader European crackdown on Meta’s practices.
The court found that Meta had gained a “significant competitive advantage” in Spain’s online advertising market by processing user data without proper legal grounds. The ruling specifically referenced Meta’s use of personal data for behavioural advertising on Facebook and Instagram.
The complaint, brought by Spanish digital press publishers and news agencies, focused on Meta’s legal justification for processing personal data after the EU’s General Data Protection Regulation (GDPR) came into effect in May 2018. At that time, Meta shifted from relying on user consent to claiming “necessity for the performance of a contract” to support behavioural advertising. Regulators later deemed this approach inadequate.
Meta returned to a consent-based model in August 2023, but the court estimated that over five years, the company earned at least 5.3 billion euros in profits from advertising, considering the entire amount obtained in breach of the GDPR.
Meta strongly disagreed with the ruling, calling it a “baseless claim that lacks evidence of alleged harm” and said it would appeal. A company spokesperson emphasized that Meta complies with applicable laws, provides transparent information, and offers users control over their experience on its platforms.
This case adds to a series of European investigations into Meta. Last year, the European Commission fined Meta nearly 800 million euros for imposing unfair trading conditions on other online classified ads services. In Spain, Prime Minister Pedro Sanchez announced that a parliamentary committee would investigate Meta’s alleged tracking of Android users’ web activity.
The ruling signals growing regulatory scrutiny of tech giants in Europe and underscores the financial and reputational risks companies face over data privacy and competition practices.
