A Spanish court has delivered a landmark ruling against tech giant Meta, ordering the parent company of Facebook and Instagram to pay hundreds of millions in compensation to the country's media outlets for systematic unfair competition.
Court Finds Meta Systematically Broke the Law
The legal battle began in 2023 when Spain's main media association, AMI, filed a lawsuit accusing Meta of systematically breaking EU data protection rules between May 2018 and July 2023. The Madrid commercial court that heard the case last month ruled in favour of the media groups, finding that Meta gained a significant competitive advantage in digital advertising sales by violating regulations that require user consent for personalised advertising.
The court has mandated Meta to pay 479 million euros ($552 million) in direct compensation plus an additional 60 million euros in interest. This falls slightly short of the 551 million euros initially sought by AMI, but still represents a massive financial penalty for the US-based technology firm.
Broader Implications for Media Survival
AMI director general Irene Lanzaco emphasized that this case extends far beyond Spanish borders during the trial's opening day. "This isn't a case that affects only AMI's outlets, it has implications for media worldwide," she told reporters. "What's at stake is the very survival of news media, which is being threatened by the predatory behaviour of a platform like Meta, acting with no regard for our legal framework."
The compensation will be distributed among 87 media outlets represented by AMI, including major publishers such as:
- Prisa, owner of Spain's top-selling daily El Pais
- Vocento, publisher of the conservative daily ABC
- Unidad Editorial, whose titles include El Mundo
Meta's Defense and Ongoing Legal Challenges
During the proceedings, Meta executives argued that user data mattered less than algorithms for generating personalised advertising. The company's lawyer, Javier de Carvajal, urged the court to dismiss the compensation claims, calling them "unsupported by evidence."
This ruling isn't Meta's only legal challenge in Spain. Spanish radio and television stations have launched a separate lawsuit seeking 160 million euros in damages for similar reasons. Additionally, Prime Minister Pedro Sanchez announced on Wednesday that Spain would investigate Meta for allegedly violating millions of users' privacy, summoning the tech giant to answer before parliament.
The case highlights the growing global tension between technology platforms and traditional media organizations over advertising revenue and data usage practices that many argue threaten the economic foundation of journalism.
