A German court has found Meta Platforms Inc. guilty over fake adverts posted by third parties on Facebook and Instagram and ordered the company to remove them and pay penalties. The lawsuit involved the unauthorized use of the image of the founder of a German financial portal and the company's trademarked emblem in bogus investment adverts, and the court heard the scale was large: in August 2024 alone the portal said it reported over 260 infractions to Meta, with some staying online for up to 62 days after being reported. Central to the ruling, the court said Meta has control over the content users see because of its algorithms and advertising systems, meaning it cannot use a lack-of-knowledge defense under Europe's Digital Services Act. Meta said it disagreed with the ruling and was examining its future steps. The verdict is not final and can be appealed, and that appeal carries implications beyond the damages in this instance, as a higher court might clarify how far platforms themselves are responsible for the spread of fraudulent ads through their own systems.
Meta Platforms Inc.German court found Meta liable for fraudulent third-party ads and ordered removal plus penalties under the Digital Services Act.
