Court Ruling Against Meta: Record Compensation for Spanish Media
A high-profile trial in Madrid has concluded with Meta being ordered to pay €479 million to 87 Spanish publishers and news agencies. The case centered on unfair competition in the digital advertising market, related to Facebook and Instagram’s use of personal data without fully complying with European privacy standards.
The court partially upheld the plaintiffs’ claims, which initially estimated damages at €551 million. The proceedings revealed that Meta used users’ personal data for targeted advertising, giving it a significant advantage over other market participants, especially Spanish online publications.
Data Use Without Consent: The Core of the Claims Against Meta
A key issue in the case was that, after the General Data Protection Regulation (GDPR) came into force in 2018, Meta changed its legal basis for processing user information. Instead of obtaining explicit consent, the company switched to a model where data processing was justified by contractual necessity. The court found that this practice did not meet European legal requirements, making the use of data for advertising purposes unlawful.
As a result, Meta gained the ability to sell ads based on user behavior, which significantly boosted its revenue in the Spanish market. According to the court’s estimate, over five years the company made more than €5.2 billion from online advertising in Spain alone, leveraging the advantage gained by violating the rules.
How the ruling impacts the advertising market and the future of digital platforms
The court decision could set a precedent for Spain’s entire advertising industry. The funds Meta obtained in violation of the law must now be redistributed among competitors, primarily among Spanish digital media. To calculate compensation, the court used data on the market share held over five years by the affected publishers during the period of violations.
It is also noted that Meta did not provide financial statements for its business in Spain—a fact the court viewed as indirect confirmation of the plaintiffs’ claims. If the company’s revenue had been lower than reported, Meta could have produced the appropriate documents; however, this did not happen.
Experts believe this ruling could influence approaches to personal data processing and advertising not only in Spain, but across Europe. For digital platforms, it signals the need to strictly comply with rules governing users’ personal information.
