A German court has held Meta Platforms liable for fraudulent third-party advertisements on Facebook and Instagram, a September 16 decision that could raise the bar for how quickly digital platforms must respond to reported scams. The case was brought by a German financial portal and its founder after their trademarked logo and image were used without permission to promote allegedly fraudulent investments. According to the court, the portal reported nearly 260 violations to Meta in August 2024 alone, with some flagged content taking as long as 62 days to be removed. The ruling ordered Meta to remove the advertisements and pay damages, and it rejected Meta's attempt to rely on the Digital Services Act's lack-of-knowledge defense, with the court arguing that Meta exercises meaningful control over what users see because Facebook and Instagram use algorithms to distribute content and advertisements rather than simply displaying posts chronologically, citing a June European Court of Justice ruling as precedent. Meta said it disagrees with the decision and is considering its next steps, pointing to systems it already uses to proactively detect harmful content and remove material reported by users; the decision is not final and can still be appealed, and Meta must also disclose information about the fraudulent advertisements and the revenue generated from them.
Meta Platforms Inc.German court held Meta liable for fraudulent third-party ads and rejected its Digital Services Act defense, ordering removals and damages.
