Meta hit by German court ruling over fake ads: What to know

A German court has ruled that Meta can be held liable for fake advertisements by third parties appearing on its platforms including Instagram and Facebook, and the decision has wider implications ordering the US tech giant to remove such kinds of content and pay damages for fraudulent ads on Thursday.

The lawsuit was primarily brought by the operator of a German financial portal and its founder whose label and image were used in unauthorized fraudulent investment promotions. The court said that the portal operator reported nearly 260 violations to Meta in August 2024 whereas Meta took up to almost 62 days to remove certain content.

It further implies that Meta could not rely on the Digital Services Act’s plausible deniability because in contrast to algorithmic feeds, it exercises continuous directing authority and policy control over the platform.

A statement from Meta’s spokesperson reads: “We respectfully disagree with this decision and are considering next steps.”

According to the Meta spokesperson, the company had taken proactive countermeasures and removed flagged content. The ruling on September 16 specifically mandated Meta to reveal the specifics of the fake advertisements and revenue generation from them. In addition, the court said that the ruling was not final and is open to challenge by way of appeal.