Spanish media outlets raise $600 million lawsuit against Meta

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A Spanish media organization encompassing 83 separate outlets is suing Meta, according to a lawsuit filed Friday and reported by Reuters. The AMI media association filed the lawsuit in commercial court with the support of its member media outlets. The lawsuit claims that Meta violated European Union advertising rules which fostered unfair competition in the advertising sector. The lawsuit, which seeks €550 million ($600 million), is the latest legal challenge Meta faces in the EU as a result of its business practices.

If the case raised by the Spanish media is successful, it could serve as a precedent for outlets in other EU countries. “Of course, in any other EU country, the same legal proceeding could be initiated,” said Nicolas Gonzalez Cuellar, a lawyer who represents AMI, to Reuters.

Spanish media claims Meta violated EU ad rules

The lawsuit alleges that Meta used its large collections of data, obtained through ownership of Facebook, Instagram, and WhatsApp, gave it an unfair advantage in advertising. The news organizations called Meta’s use of personal data “massive” and “systemic.” More importantly, the Spanish media outlets argue that Meta collected this data in violation of EU rules.

The case hinges upon the EU’s General Data Protection Regulation, which has been in place since 2018. This policy outlines exactly when and how personal data collection is permitted. There are six qualifications for personal data collection in the EU, and at least one must be met for it to be lawful. However, the one that applies to a private tech company like Meta is expressed consent. The regulations stipulate that personal data collection is lawful if “the data subject has given consent to the processing of his or her personal data for one or more specific purposes.”

The AMI media association says that Meta collected this data without getting user consent. So, the legal challenge is less about the fairness of competition. Instead, it hinges upon whether Meta has collected data in accordance with EU rules. Since Meta uses personal data for its target ads, a violation could have cost media organizations a lump sum of ad revenue.

The EU upholds some of the strictest regulations in the world with regard to data privacy and advertising. That’s why it makes sense for news organizations to challenge Meta in this jurisdiction. The latest effort comes as news organizations struggle to earn significant revenue in the digital era. Just last month, a report surfaced that fair compensation for news outlets by social media sites and search engines would amount to a figure of $14 billion.

2023-12-05 15:06:51