The multi-million dollar lawsuit against Facebook for unfair competition in Spain is underway.

BarcelonaMore than €550 million is the amount sought by some eighty media outlets associated with the AMI in a lawsuit filed against Meta—the company that owns Facebook and Instagram—which is set to be heard this Wednesday. The Madrid commercial court is holding a hearing to determine the damages caused by the tech giant between May 25, 2018, and July 31, 2023, for using the personal data of millions of European users to build its hyper-targeted advertising business. This lawsuit joins the lawsuit filed by major television and radio networks—including Mediaset and Atresmedia—for the same events; in this case, they have a joint claim of €160 million.

EU law requires a legitimate legal basis to engage in this advertising profiling, but the AMI maintains that Meta has ignored this requirement, as demonstrated by several resolutions from European data protection authorities. In essence, it is considered that 100% of the company's revenue has been achieved through the massive and unauthorized use of users' browsing data, which has allowed the company to enjoy an unfairly obtained competitive advantage. According to the entity, which brings together news media from across Spain, including the ARA, these practices have "put its economic sustainability at risk."

The Spanish lawsuit has generated some repercussions. In France, for example, a similar model has been followed, and 67 companies (representing around 200 media outlets) have also sued Meta for similar practices. Furthermore, the French Competition Authority has launched a formal investigation against the company led by Mark Zuckerberg for abuse of position in the digital advertising market.

During the session, three executives from Facebook and Instagram testified. One of them was David Sáez de la Torre, director of Industry in Spain and Portugal since 2018, who asserted that a greater volume of data does not necessarily mean greater success when it comes to attracting advertising, because everything depends on the technological tools available to manage this data and make operational decisions. According to him, aspects related to the user's experience while browsing Facebook or Instagram are also taken into consideration.

While waiting to see the outcome of the trial, the Association of Information Media is calling on public and private advertisers "to invest in safe, responsible media that respect citizens' rights, thus contributing to strengthening the sustainability of journalism and the democratic quality of Spain." The president of the organization, José Joly, explained that "Meta has built its dominant position in the advertising market by disregarding the regulations designed to protect the fundamental right to privacy of European citizens. Such behaviors jeopardize the survival of the media."

Irene Lanzaco, Director General of AMI, adds: "This case is not just a business issue: the protection of the rights of millions of European citizens whose data has been exploited without their consent is at stake. Defending a transparent and fair digital market is key to ensuring information plurality and the viability of media outlets compared to the media."