Meta Fined €479 Million by Spain for Data Privacy Violations

Post by : Bianca Suleiman

In a landmark decision reshaping the digital advertising scene in Europe, a Spanish commercial court has mandated Meta to disburse €479 million to numerous Spanish digital media organizations. This ruling follows evidence that Meta acquired a competitive advantage in Spain’s online advertising sector by improperly utilizing personal data from users on Facebook and Instagram, violating EU data protection standards.

The financial restitution will be shared among 87 digital media and news agencies, representing one of the most substantial group compensations ever levied on the tech giant in Spain. The court emphasized that Meta’s targeted advertising practices, reliant on the analysis of user behavior and preferences, provided the company with a "notable competitive edge" over local media, which face stricter regulations and limited access to data.

The ruling indicated that Meta’s handling of data breached the EU's General Data Protection Regulation (GDPR), enabling the platform to fortify its position in Spain's advertising market. This situation fostered an unbalanced competitive environment, making it difficult for compliant publishers to thrive.

As of Thursday, Meta has not publicly responded to the court's ruling, and inquiries for comments remain unaddressed.

This ruling coincides with heightened scrutiny of the company in Spain, as Prime Minister Pedro Sánchez announced plans for a parliamentary inquiry into Meta's potential privacy infractions, affecting millions of local users. This investigation aims to delve deeper into the company’s methods of collecting, managing, and monetizing user data.

With the court's decision and a parliamentary review underway, Spain is intensifying its pressure on Big Tech, marking a new chapter in regulatory engagement.