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

US tech giant Meta is liable for fake advertising on its social media platforms Instagram and Facebook, a German court ruled on Thursday, reported dpa.

The Frankfurt regional court was asked to rule on a case concerning advertisements using the logo of financial advice website Finanzfluss, alongside photos of the website's founder, to promote fraudulent investment schemes.

The court found that Meta was still liable despite claiming that it had no knowledge of the fake advertisements, citing a decision by the European Court of Justice (ECJ).

The EU court had ruled that a service provider is liable for content if it exercises control over said content.

The Frankfurt court noted that it was up to Meta to decide when and in which order advertisements are published on its platforms, while the company uses algorithms to target users specifically.

The German court ordered Meta to cease the publication and distribution of the fake adverts, and to compensate the claimant for any damages arising in future from the dissemination of fake adverts, including those with similar content.

Meta must also share information with the claimant regarding the fake adverts on Instagram and Facebook and disclose the revenue generated by them, the court said.

The verdict can still be appealed.

While the founder of Finanzfluss welcomed the ruling as an important first step, Meta rejected the decision.

A spokesman said the company was considering further legal steps, stressing that Meta had taken several measures in the case, including removing the content after it was reported as fake.