Meta, the parent company of Facebook and Instagram, is currently embroiled in a significant legal battle in Spain, facing damages claim exceeding €550 mn (approximately $600 mn). This lawsuit, led by AMI, an association of Spanish newspaper owners, alleges that Meta's practices regarding personal data processing for advertising have not only violated the EU’s General Data Protection Regulation (GDPR) but also constitute a competition breach.
AMI, representing over 80 members including prominent publishers like El País, ABC, and La Vanguardia, argues that Meta's "systematic and massive non-compliance" with GDPR rules has led to this legal challenge. The association accuses Meta of using personal data of its platform users, obtained without consent, to unfairly dominate the advertising market.
In response to the various legal challenges, Meta has altered its legal basis for ad processing in the EU multiple times. Initially switching to a basis called legitimate interests, it faced another setback in July 2022 when this basis was invalidated by the CJEU. As of November, Meta has claimed consent as the legal basis for its tracking-ads business in the EU, presenting users with a choice between a paid, ad-free version of its products or agreement to be tracked.
This latest approach by Meta is already facing challenges, with privacy and consumer rights groups deeming it illegal and unfair. Interestingly, the use of 'cookie paywalls', like Meta’s approach, is a common practice on several European newspaper websites.
As the legal proceedings continue, Meta faces not only the current lawsuit but also the possibility of more suits in the future, as this case could set a significant precedent in the realm of data privacy and digital advertising.
It should be noted that Meta has not any official statement yet and with several possible Lawsuits in view, it would be critical on how they respond to allegations.
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