A German court has held Meta liable for fake advertisements posted by third parties on Instagram and Facebook. The court has ordered the US technology company to remove the content and pay damages, according to its Thursday statement.
The case was filed by the operator of a German financial portal and its founder. Their trademarked logo and image were used without permission in posts promoting investments that were allegedly created with fraudulent intent.
The portal operator reported nearly 260 violations to Meta in August 2024 alone. However, the court said Meta took as long as 62 days to remove some of the reported content.
The court ruled that Meta could not use the Digital Services Act’s lack-of-knowledge defence. It said the company exercises control over content through its algorithms and advertising practices, unlike platforms that only provide purely chronological feeds.
The court referred to a precedent established by the European Court of Justice in a June ruling.
“We respectfully disagree with this decision and are considering next steps,” a Meta spokesperson said in a statement. The spokesperson added that the company had already taken significant measures, including proactive detection systems and the removal of reported content.
The ruling, dated September 16, also requires Meta to disclose details about the fake advertisements and the revenue generated from them.
The decision is not yet final. The court said Meta can challenge the ruling by filing an appeal.
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