Summary: Over 80 Spanish media organizations have filed a lawsuit against Meta, accusing the company of unfair competitive practices in the digital advertising sector. The lawsuit alleges that Meta leveraged personal data, in violation of the General Data Protection Regulation (GDPR), to dominate digital advertising, putting traditional media at a significant disadvantage. The media groups claim that Meta’s targeted advertising, made possible by large-scale data harvesting, has eroded their revenue streams and market share. This case highlights broader concerns about the dominance of big tech firms in the media industry and the role of competition law in preventing monopolistic practices. The Spanish lawsuit, which seeks €600 million in damages, underscores the need for updated competition regulations that account for the unique challenges posed by the digital economy. If successful, this case could lead to increased scrutiny of digital platforms’ use of personal data and broader legal implications across Europe. It may also influence how competition law evolves to address data exploitation and market power in the tech industry.
> Introduction
The VOA News published an [1]article to bring attention to the unfair competition by the tech giant Meta. The headline of the News Article read “Spanish Newspapers Fight Meta in Unfair Competition Case”. [2]Recently, over 80 Spanish media organizations filed a lawsuit against Meta (formerly Facebook) which brings into attention the key issues such as data privacy, competition legislation, and the viability of conventional media in the digital era. Meta is accused for alleged unfair competitive practices that have leveraged on personal data to gain an advantageous position within the advertising industry thereby putting the legacy media outlets at a disadvantage, and is thus made liable to pay $600 million for the total damage caused.
For the convenience of the reader the article is analysed in segments.
> The Core of the Dispute: Unfair Competition and Data Exploitation
The main focus of this controversy revolves around alleged misuse by Meta of personal data through which according to Spanish media groups has enabled it to dominate in the field of digital advertising. This has resulted in substantial loss of income for conventional journalism prompting them so much. This case is centred on the allegations that meta has systematically harvested and used people’s personal data without their consent , thus violating the [3]GDPR rules that sets out how EU citizens’ personal information should be handled, particularly with regard advertisements meant for specific groups of consumers. Because traditional media rely on less sophisticated techniques to generate advertising revenue, Meta has an unfair competitive advantage over them.
> Relation of the Article with Competition Law
To view this Article from the perspective of Competition Law, this complaint addresses more general worries about the dominance of big digital corporations in the market and how that affects other businesses. Competition Law, also called antitrust law, is meant to prevent monopolistic activities and ensure that all companies operate on a level playing field. According to the Spanish media the alleged actions of Meta may be seen as anti competitive since they can lead to market domination through unfair means.
Competition Law states that when a large company utilizes its advantage to harm competitors or clients, it is engaging in unfair competition. The media businesses claim that Meta is unfairly competing with them by not paying writers of content that promotes its platforms properly and by utilizing personal data for targeted advertising. This is so that it can use Meta’s data collection capabilities, which are hard for other media organizations to match, to entice advertisers away from those traditional venues.
> Media and Competition Law in a Wider Context
This dispute is a part of the larger worldwide conflict between large digital corporations like Google and Meta and conventional media companies. Media organizations have long contended that these tech firms derive more benefit than their counterparts for not fairly compensating content rights holders when distributing news. This has been addressed in various jurisdictions through laws requiring that technology firms pay news producers for their outputs. However, the Spanish lawsuit against Meta goes beyond this by alleging several anti-competitive practices on its part besides nonpayment for materials.
Competition Law is particularly relevant here, because it aims to protect markets from practices which may lead to monopolization or abuse of dominant positions. The capacity of Meta to amass huge quantities of personal information allows it to come up with highly targeted adverts, which are a key component of its market power. Conversely, the traditional media lack access to similar amounts of data making them less competitive unlike digital platforms such as Meta for instance, one can argue from the Spanish media’s lawsuit that this imbalance among others is threatening their financial viability and can undermine diversity in journalism which is key towards realizing a democratic society’s health.
> GDPR and its Role in the Lawsuit
Among the most stringent data protection laws worldwide is General Data Protection The General Data Protection Regulation (GDPR), one of the strictest data protection rules in the world, is what the Spanish media is arguing against. Individuals must have significant control over their data, and personal data may only be gathered and used with consent, according to GDPR regulations. According to the lawsuit, Meta obtained personal data without the necessary consent, which gave it an unfair advantage in the advertising sector and breached GDPR.The significance of the GDPR’s consent-focused provisions is based on people’s ability to control their own information. Meta acknowledged that by breaking those rules, it had unfairly benefited from certain customers’ privacy rights and gained an unfair advantage in the market.
However, this was made possible by Meta’s ability to give users more relevant advertisements than they otherwise would have because of the incorrect extraction of some subscriber data. Revenue declines significantly as a result of traditional media’s inability to compete with more stringent laws about data acquisition.
> Implications for Competition Law Enforcement
The verdict in this legal dispute could significantly affect how Competition Laws are applied in the digital age. If the Spanish media groups are successful, their case might lead to similar lawsuits against internet companies accused of unfair business tactics against other EU members and possibly even outside of the EU. This might lead to stricter enforcement of regulations preserving personal data, such the GDPR, especially in cases when disobeying the law also undermines fair competition. This case also highlights the growing awareness that Competition Law needs to adapt to the unique challenges posed by the digital economy. The old antitrust laws, which were designed for industrial markets, might need to be changed in order to account for the impact of data on competition. The Spanish media case highlights how crucial it is that regulators and courts consider the ways that inappropriate use of data might harm other market participants and genuine competitors.
> Conclusion
The growing battle between conventional media and tech titans has intensified with the filing of the most recent lawsuit against Meta by Spanish media companies. This case highlights the vital link between Competition Law and data privacy, as well as how inappropriate handling of personal data can lead to unfair advantages in the digital advertising sector. The outcome of this case could have a big influence on data protection, media regulation, and how Competition Law is applied both inside and outside of the European Union. Competition Law needs to change to keep up with the rapidly evolving digital economy to ensure that every player has an equal chance to be successful.
Notes:-
[1] Graham Keeley, Spanish Newspapers Fight Meta in Unfair Competition Case, VOA News, December 13, 2023
[2] World Association of News Publishers, https://wan-ifra.org/2023/12/spanish-media-group-sues-meta-for-unfair-competition-and-claims-over-550-million-euros(last visited Sept. 15, 2024)
[3] General Data Protection Regulation (GDPR), https://gdpr-info.eu/ , (last visited Sept. 15, 2024)
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Author: Shruti Bose, a 5th-year BBA LLB (Hons) student at CHRIST (Deemed to be University), Pune, Lavasa,
