Spanish Court Fines Meta $552M: What This Means for Your Business and Digital Advertising in Oman
A Spanish court has ruled that Meta, the parent company of Facebook, must pay €552 million (approximately $552 million) to Spanish digital media outlets for engaging in unfair competition and violating European Union data protection regulations. This decision, announced by Madrid’s Commercial Court on Thursday, affects 87 digital press publishers and news agencies.
The court found that Meta gained an “undue competitive advantage” in Spain’s online advertising market through the unlawful processing of user data on its platforms, Facebook and Instagram. Specifically, the ruling highlights Meta’s use of personal data for behavioural advertising as the basis for the compensation.
Meta has expressed its disagreement with the ruling and plans to appeal. A company spokesperson stated, “This is a baseless claim that lacks any evidence of alleged harm and willfully ignores how the online advertising industry works.” The spokesperson added that Meta complies with all relevant laws, providing users with transparent information, clear choices, and tools to control their experience on its services.
The court determined that Meta’s actions violated the EU’s General Data Protection Regulation (GDPR), which also constituted a breach of Spain’s antitrust laws. The complaint, filed by the Spanish media outlets, centered on Meta’s shift in the legal basis for processing personal data when GDPR came into effect in May 2018. Meta changed from relying on user consent to justifying data use as “necessary for the performance of a contract” to support behavioural advertising—a position regulators later found insufficient.
In August 2023, Meta reverted to using consent as its legal basis for data processing. The judge estimated that during the five years under scrutiny, Meta earned at least €5.3 billion in advertising profits, all treated as obtained in violation of GDPR rules.
This case echoes a similar claim under review in France and follows a series of fines Meta has faced in Europe. Last year, the European Commission fined Meta nearly €800 million for forcing sellers on its Facebook Marketplace to abide by unfair trading conditions and for linking the service to the main Facebook social network.
In Spain, ongoing scrutiny of Meta continues. The government, led by Prime Minister Pedro Sánchez, announced that a parliamentary committee will investigate allegations that Meta used a concealed mechanism to track the web activity of Android device users. Meta has pledged to cooperate with Spanish authorities on this matter.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
Meta’s hefty $552 million fine in Spain for violating EU data protection and antitrust laws signals a tightening regulatory environment for global tech giants, emphasizing the rising power of data privacy frameworks. For businesses in Oman, this highlights the urgent need to prioritize transparent data practices and compliance with emerging international privacy standards to avoid legal and reputational risks. Smart investors and entrepreneurs should consider opportunities in privacy-focused technologies and services, as demand surges for solutions that help companies navigate complex data regulations effectively.
