Meta Faces $598 Million Lawsuit from Spanish Media Outlets Over Unfair Advertising Practices

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Published: December 04, 2023 at 5:16 am Updated: December 04, 2023 at 5:16 am

Edited and fact-checked:
December 04, 2023 at 5:16 am

In Brief

83 Spanish media outlets, led by the AMI association, have filed a $598 million lawsuit against Facebook owner Meta, accusing it of gaining unfair competitive advantage in the advertising market through systematic misuse of personal data.

A coalition of 83 Spanish media outlets, represented by the AMI newspaper publishing association, has launched a significant legal challenge against Meta Platforms, the owner of Facebook. The media outlets are seeking 550 million euros ($598 million) in damages, accusing Meta of unfair competition in the advertising market.

AMI filed the lawsuit in a commercial court, alleging that Meta’s practices harm the competitive balance in the advertising industry. The association contends that Meta’s business model provides it with an undue advantage over traditional media companies.

The heart of the complaint lies in Meta’s use of personal data from Facebook, Instagram and Whatsapp users. According to the plaintiffs, this data collection enables Meta to create and deliver highly personalized ads, giving it an unfair edge over competitors.

The lawsuit also accuses Meta of violating data protection rules. Prominent members of the group, including Prisa and Vocento, claim that Meta often uses personal data for ads without obtaining explicit consent from the users, breaching data privacy norms.

This legal action is not the first instance of Spanish media clashing with major tech companies. In 2014, the Spanish government intervened to shut down Alphabet’s Google News service in Spain. It was only reopened in 2022 following new legislation that allowed direct negotiations between media outlets and the tech giant.

However, Meta’s press office has not yet responded to the lawsuit. This silence comes as the company faces increasing scrutiny worldwide for its data practices and its impact on the advertising market.

This lawsuit represents a significant effort by traditional media to challenge the dominance of tech giants in the advertising space. It highlights the ongoing tensions between these two sectors.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti