German court holds Meta liable for fraudulent ads

On 16 September, a German court ruled that Meta Platforms is liable for fraudulent third-party advertisements hosted on Facebook and Instagram. The decision ordered Meta to remove the fraudulent promotions, pay damages, and disclose both information about the ads and the revenue generated from them.

The lawsuit was brought by a German financial portal and its founder after their trademarked logo and likeness were used without authorization to promote fraudulent investments. According to the court, the portal reported nearly 260 violations to Meta in August 2024 alone, with some flagged materials taking as long as 62 days to be taken down.

The court rejected Meta's defense of lack of knowledge under the European Union Digital Services Act. It determined that Meta exercises meaningful control over audience reach because its platforms rely on algorithmic distribution rather than chronological feeds. The court cited a June ruling from the European Court of Justice as precedent.

Meta stated that it disagrees with the decision and is reviewing its options. The company noted that it already maintains systems to detect harmful material proactively and process user reports. The ruling is not yet final and remains subject to appeal.