Meta fined over Rs 4917 crore in Spain for illegal data processing

A Madrid court has ordered Meta to pay 481 million euros (over Rs 4917 crore) in damages to 81 Spanish media outlets on Thursday, finding the parent company of Facebook and Instagram violated European data protection laws for five years.

Commercial Court No 15 of Madrid ruled that Meta gained an unfair competitive advantage in Spain's online advertising market by illegally processing user data between May 2018 and August 2023.

The court determined Meta breached the European Union's General Data Protection Regulation by changing its legal basis for data collection from user consent to "necessity for contract performance" after GDPR took effect.

"The illicit treatment of this enormous quantity of personal data meant Meta had an advantage that Spanish online media could not match," the court stated. "Meta's actions harmed the online advertising revenues of Spanish digital media outlets."

The lawsuit was brought by AMI, Spain's main media association, which represents owners of major newspapers including El País, El Mundo, ABC, and La Vanguardia.

The judge estimated Meta generated at least 5.3 billion euros (over Rs 5.41 lakh crore) in advertising revenue during the five-year violation period.

Meta Plans Appeal

Meta announced it will appeal the decision, calling it "baseless." The company said the claim "lacks any evidence of alleged harm and willfully ignores how the online advertising industry works".

Meta added that it "complies with all applicable laws" and provides users with clear choices and transparent information.

The ruling comes as Meta faces mounting legal challenges in Europe. Spanish television and radio broadcasters filed a separate 160 million euro (Over Rs 1635 crore) lawsuit against the company on similar grounds.

In France, 67 media companies representing 200 publications filed suit in April 2025, alleging Meta's illegal data practices stripped French outlets of advertising revenue.

Pattern of European Violations

This marks the latest in a series of major GDPR penalties against Meta. In May 2023, Ireland's Data Protection Commission issued a record 1.2 billion euro (Over Rs 1.22 lakh crore) fine for transferring EU user data to the United States without proper safeguards. The company has paid nearly 3 billion euros (over Rs 3.06 lakh crore) in European data protection fines since 2022.

The Spanish court indicated its ruling could influence other legal cases across Europe. The decision follows a separate investigation announced by Spanish Prime Minister Pedro Sánchez on November 18, who accused Meta of using a "hidden mechanism" to track Android users' web activity, even in incognito mode.

Meta reverted to consent as its legal basis for behavioral advertising in August 2023, bringing its practices into compliance with European law.