The Information Media Association (AMI), representing 83 media outlets, has filed a lawsuit against Meta, the parent company of Facebook, accusing it of engaging in unfair competition in online advertising by purportedly flouting European Union (EU) regulations on data protection.
AMI, which represents major Spanish newspapers such as El País, El Mundo, ABC, and La Vanguardia, has demanded a substantial €550 million from Meta. The lawsuit, filed at Madrid’s mercantile courts, alleges “systematic and massive non-compliance” with EU data protection regulations from May 2018, when they came into effect, until July 2023.
The primary accusation centres around Meta’s alleged disregard for EU rules requiring user consent for the utilization of their data in advertising profiling. The association contends that Meta has consistently failed to adhere to this requirement, compromising the privacy rights of European citizens.
Meta, in response to the legal action, refrained from commenting, citing a lack of access to the legal documents.
The core of Meta’s revenue generation has long been rooted in behavioural advertising, a practice involving the tracking of individual online behaviour, such as web browsing habits, mouse clicks, and app usage. This data is then leveraged to create targeted advertising profiles for users.
However, recent court rulings have challenged Meta’s ability to justify its advertising methods within the framework of the EU’s data privacy regulations. In a pivotal decision in July, the EU’s highest court ruled against Meta, stating that the company cannot compel users in the 27-nation bloc to accept personalized ads; instead, users must provide explicit and voluntary consent. In response, Meta introduced ad-free versions of Facebook and Instagram for European users at a monthly subscription fee.
AMI asserts that Meta’s use of personal data without proper consent has provided the American tech giant with an “illegitimately obtained competitive advantage,” posing an indirect threat to the livelihood of Spanish media organizations.
In a call to action, the association urged advertisers in both the public and private sectors to support “safe, reliable, and responsible media” that respect citizens’ rights and contribute to the promotion of democratic values in Spain.
Irene Lanzaco, the Director General of the association, emphasised, “The time has come to put an end to the behavior of technology companies that can afford to pay million-dollar penalties to continue failing to comply with regulations, destroying the market in which we operate and making the illegitimately obtained income their own.”