Meta faces a significant hurdle in Spain, with 83 local media outlets joining forces in a $600 million anti-competitive lawsuit. Their claim centers on Meta’s alleged violation of E.U. data protection rules to dominate the advertising market. The coalition contends that Meta consistently gathers user data without proper consent, a breach of the 2018 E.U. General Data Protection Regulation (GDPR). This legal action about Fine on Meta emphasizes the growing concerns over Meta’s data practices and their potential impact on market dynamics in Spain.
Why does the fine on Meta reach that high?
Meta faces accusations under GDPR for not obtaining explicit consent from users and violating laws in the E.U. and beyond. The group claims Meta exploits this breach to enhance its market dominance. To align with GDPR, Meta is reinterpreting legislation, especially regarding user consent signals, as outlined in its January plan to meet compliance mandates.
In January, a €390 million fine was imposed for mishandling user information in Facebook and Instagram ads. Shortly after, a €5.5 million penalty was issued for violating data protection laws, compelling user consent, and making service accessibility conditional on accepting updated Terms of Service. This series of fines emphasizes the DPC’s ongoing scrutiny and enforcement of data privacy regulations.
Meta’s take on it.
Facebook and Instagram thrive on personalization, deeming a unique user experience crucial, ads included. Meta traditionally relies on ‘Contractual Necessity’ for behavioral ads based on user platform activities. Recently, Meta acknowledged the need to update this approach, particularly for processing data related to behavioral advertising.
This shift responds to evolving regulatory demands, notably the Irish Data Protection Commission’s interpretation of GDPR and the forthcoming Digital Markets Act (DMA). The Spanish media coalition asserts that Meta’s recalibration, prompted by regulatory dynamics, could have broader implications across all regions of Meta’s operations.
Moreover, Meta has yet to respond to the recent filing from the Spanish media coalition.
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