Meta faces German court ruling over fake ads on Facebook, Instagram (META:NASDAQ)

A German court ruled Meta liable for fraudulent ads on Facebook and Instagram, rejecting its defense under the Digital Services Act. The court cited Meta's algorithmic control over content distribution. Meta must remove ads, pay damages, and disclose ad revenue. The company plans to appeal. Investors note potential higher compliance costs and legal exposure, though immediate financial impact is limited.

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A German court ruled Meta liable for fake investment ads on Facebook and Instagram, ordering it to remove the ads and pay damages. The case was brought by Finanzfluss, which reported 260 violations in August 2024. Meta argued it should not be responsible for unknown content, but the court disagreed, citing Meta's control over ad algorithms. The ruling follows a similar EU court decision and increases legal pressure on Meta in Europe.

Meta META was found liable by a German court for fake ads on Facebook and Instagram, ordered to remove content and pay damages. The case involved unauthorized use of a financial portal's logo in fraudulent investment ads. The court ruled Meta cannot claim lack of knowledge under the Digital Services Act, citing EU precedent. Meta disputes the decision and is reviewing options.