German court rules Meta liable for fake ads on Instagram, Facebook

A German court has ruled that Meta  is liable for fake advertisements posted by third parties ​on its Instagram and Facebook platforms, and ordered the ‌U.S. tech giant to remove such content and pay damages, the court said on Thursday. 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 allegedly ​with fraudulent intent. The portal operator reported nearly 260 violations ​to Meta in August 2024 alone; however, Meta took up to 62 days to remove some content, the court said. It ruled Meta ​could not rely on the Digital Services Act's ​lack-of-knowledge defence, because unlike purely chronological feeds, it exercises control over ‌the ⁠content through its algorithms and advertising practices Read More: EU to ban social media for under 13s, curb access until 15. The court referred to a precedent set by a June ruling by the European Court of Justice. "We respectfully disagree with this decision ​and are considering ​next steps," ⁠a Meta spokesperson said in a statement, adding that the company had taken ​significant action, including proactive detection measures and ​removal of ⁠reported content. According to the ruling, dated September 16, Meta must also disclose details of the fake advertisements and ⁠revenue ​generated from them. The ruling is ​not yet final and may be challenged by lodging an appeal, the ​court said.