Spanish Prime Minister Pedro Sánchez has announced plans to summon representatives from Meta to Congress. The reason is suspicion of systematic and large-scale collection of users’ personal data, in violation of European data protection laws. This decision followed a court ruling that ordered Meta to pay €479 million in compensation to Spanish media and news agencies.
The court proceedings revealed that Meta, which owns platforms such as Facebook, Instagram, and WhatsApp, used the personal data of Spanish users to gain an advantage in the advertising market. According to the court, the company acted in bad faith, allowing it to bypass competitors and secure a leading position in digital advertising.
Court ruling
A commercial court in Madrid found that Meta violated the European General Data Protection Regulation (GDPR). The company stopped obtaining explicit user consent and began processing data based on ‘contract fulfillment,’ which the Spanish judiciary declared illegal. Over the five years since the GDPR came into effect, Meta changed its approach to handling information, which became the subject of the lawsuit.
During the proceedings, it was revealed that Meta did not provide the court with financial documents that could clarify the actual amount of profit earned. The judge noted that if the company had data proving lower earnings, it would have submitted them. According to the plaintiffs’ estimates, Meta’s profits from the disputed actions could have exceeded €5 billion, but the court limited the amount to €479 million.
Market Impact
The court ruling is based on an analysis by the National Commission on Markets and Competition, which assessed the share of Spanish publishers in the digital advertising market. The judge concluded that Meta’s actions significantly shifted the balance of power, depriving local media outlets of part of their revenue. The company is now required to compensate all members of the Media Information Association (AMI) for their losses.
The lawsuit noted that if Meta had continued using user consent as a legal basis, the violation would not have occurred. However, the strategic shift allowed the company to gain a competitive advantage, which ultimately led to the legal proceedings. The Spanish court cited Article 15.1 of the Unfair Competition Act, prohibiting companies from profiting through violations of the law.
European Context
The Meta scandal is not limited to Spain. The court decision emphasizes that similar proceedings are underway in France, and the company’s operations extend across all of Europe. As early as 2018, the European Parliament called for a more active use of antitrust tools to tackle abuses by major tech platforms.
In Spain, Meta’s actions led to a significant redistribution of advertising budgets in favor of the American corporation. This weakened the position of local digital media, which could not compete with targeting capabilities based on illegally collected data.
Consequences for Meta
Although the plaintiffs sought more than 550 million euros, the court only partially granted their claims. Nevertheless, the ruling dealt a significant blow to Meta and could set a precedent for other EU countries. The company is now required to pay compensation and review its data processing practices to comply with European standards.
In the near future, Meta representatives will have to provide explanations before the Spanish Congress. This case is expected to spark new discussions about regulating tech giants and protecting user rights in the digital age.
