American Marconi Wireless News - Meta defends ads model in 550-mn-euro data protection trial

EU rules oblige companies to obtain users' consent to create personalised advertising from their data.

Spain's main media association AMI says the US tech giant, which also owns Instagram and WhatsApp, created "unfair competition" by "systematically" breaking the law between May 2018 and July 2023.

The association launched a lawsuit alleging unfair competition in digital advertising sales and is seeking 551 million euros ($647 million) in compensation.

"This isn't a case that affects only AMI's outlets, it has implications for media worldwide," AMI director general Irene Lanzaco told reporters before entering the Madrid commercial court where the trial will run until Thursday.

"What's at stake is the very survival of news media, which is being threatened by the predatory behaviour of a platform like Meta, acting with no regard for our legal framework."

Meta has denied any damage or violation of EU rules, saying in a statement sent to AFP the AMI lawsuit "is not based on any evidence regarding the alleged harm."

AMI is "deliberately ignoring the evolution of the advertising industry over the past few years," Meta added.

"Meta complies with all applicable laws and has provided clear options, transparent information, and a wide range of tools for users to control their experience on our services."

- 'Huge investment' -

Meta executives told Wednesday's hearing that user data mattered less than algorithms to generate the personalised advertising.

"We have invested a huge amount" so that advertising reaches the consumer, unlike traditional media, said Beltran Seoane of Facebook Spain, responsible for relations with advertising agencies.

Tools developed by Meta "are just as important or more so than the data per se", added Facebook representative David Saez.

Expert reports and closing arguments are expected on Thursday.

Media groups represented by AMI include Prisa, owner of Spain's top-selling daily newspaper El Pais; Godo, publisher of the Barcelona-based daily La Vanguardia; Vocento, which publishes the conservative daily ABC; and Unidad Editorial, whose titles include El Mundo and sports daily Marca.

Spanish radio and television stations have launched a separate lawsuit against Meta for the same reasons, seeking 160 million euros in damages.

A similar lawsuit has also emerged in France, where around 200 media groups, including major television networks and leading newspapers, filed legal action against Meta in April.

D.Sawyer--AMWN