Key facts
- Meta is liable for fake advertisements posted by third parties on Instagram and Facebook.
- A German court ordered Meta to remove such content and pay damages.
- The court ruled Meta could not rely on the Digital Services Act's lack-of-knowledge defense.
- Meta must disclose details of the fake advertisements and revenue generated from them.
- The ruling is not final and may be appealed.
A German court ruled on Thursday that Meta Platforms Inc. is liable for fake advertisements posted by third parties on its Instagram and Facebook platforms, ordering the U.S. tech giant to remove such content and pay damages. The lawsuit was brought by the operator of a German financial portal and its founder, whose trademarked logo and image were used without consent in posts recommending investments with alleged fraudulent intent.
The portal operator reported nearly 260 violations to Meta in August 2024 alone, with Meta taking up to 62 days to remove some content, according to the court. The court ruled that Meta could not rely on the Digital Services Act's lack-of-knowledge defense, as it exercises control over content through its algorithms and advertising practices, unlike purely chronological feeds. This ruling follows a precedent set by a June ruling from the European Court of Justice.
A Meta spokesperson stated, "We respectfully disagree with this decision and are considering next steps," adding that the company has implemented significant measures, including proactive detection and removal of reported content. According to the ruling, dated September 16, Meta must also disclose details of the fake advertisements and the revenue generated from them. The decision is not yet final and can be challenged through an appeal.