A German court has found Meta liable over fake advertisements.

A German court has held Meta liable for fake advertisements placed by third parties on Facebook and Instagram, ordering the company to remove similar content and pay damages. The court issued its ruling on September 16.

The case was brought by the operator of a German financial portal and its founder. Their registered logo and the founder's photo were used without permission in posts and advertisements offering users what were allegedly fraudulent investment offers.

According to the court, the portal operator reported nearly 260 cases of similar violations to Meta in August 2024 alone. However, it took the company up to 62 days to remove some of this content.

The court also ruled that Meta cannot rely on the argument provided for under the EU's Digital Services Act (DSA), according to which a platform is only held liable for illegal content posted by a third party if it has been made aware of its existence.

In the court's assessment, Meta does not merely display content to users in chronological order. Through algorithms and advertising systems, the company itself controls how ads are distributed and to whom they are delivered, which is why additional liability applies to it under the DSA.

In reaching its decision, the German court also took into account a ruling handed down by the Court of Justice of the EU in June, which sets a precedent regarding platform liability.

A representative of Meta disagreed with the court's ruling and stated that the company is considering options for further action on the case. According to the representative, Meta has already taken significant measures against fake advertisements, including proactive detection systems and the removal of content reported by users.

Under the ruling, Meta was also ordered to disclose detailed information about fake advertisements, including data on the revenue generated from them.

The court's decision has not yet entered into final force. The parties are entitled to appeal it.