A German court has ruled that Meta is liable for fraudulent advertisements posted by third parties on Facebook and Instagram. The company is now required to remove the infringing content and provide financial compensation to the plaintiffs, a German financial portal and its founder.
The lawsuit was triggered by the unauthorized use of the portal's trademark and the founder's image to promote suspicious investment schemes. In August 2024 alone, the portal reported nearly 260 incidents of infringement to Meta, with some content remaining active for up to 62 days after being flagged.
The court rejected Meta's defense based on the Digital Services Act, stating that the company's use of algorithms and advertising mechanisms constitutes active control over platform content. The ruling also cites a precedent set by the European Court of Justice in June 2024.
Under the court's decision, Meta must disclose specific details regarding the fraudulent ads and the revenue generated from them. A Meta spokesperson stated that the company disagrees with the ruling and is considering further legal action, noting that they already employ detection measures.
