The Frankfurt court ruled that Meta is liable for fraudulent advertisements on Facebook and Instagram that used the branding and image of the German financial portal Finanzfluss and its co-founder Thomas Kehl. In August 2024, the company reported nearly 260 violations, with some instances taking up to 62 days to be removed from the platforms.
Meta attempted to invoke liability protections under the European Union’s Digital Services Act, arguing it acted as a passive host. However, the court rejected this defense, noting that Meta’s use of algorithms, automated advertising auctions, and content distribution systems grants the company significant control over what users see, thereby weakening its claim to protection.
The court ordered Meta to disclose information regarding the fraudulent ads and the revenue generated from them to help calculate damages. This ruling, issued on September 16 and registered as case 2-06 O 234/25, is not yet final, and the company is considering an appeal. Meta maintains that it actively combats scams using AI and verification tools.
The decision carries broader implications for the tech industry, as it challenges the long-standing argument that social platforms are merely passive hosts for third-party content. If upheld, the ruling could redefine the responsibility of platforms that actively select, rank, and monetize the content displayed to their users.
