German Court Rules Meta Liable for Fake Ads on Facebook and Instagram
Synopsis
Meta faces legal liability in Germany after a Frankfurt court ruled over fraudulent advertisements on Facebook and Instagram, involving unauthorised use of a financial portal’s branding and founder’s images.
Meta fake ads have led to a trial by a German court that has found the technology firm guilty of running fraudulent ads on Facebook and Instagram.
The Frankfurt Regional Court ordered the company to stop the advertising and pay damages in the future to the plaintiffs, as well as compensate it with information about the ads and the income they bring.
The case is brought by a German financial information portal and its founder, whose advertisements that led to investment schemes were placed without permission of the company, using their trademarked logo and the founder’s name and image.
Nearly 260 Reports Preceded the Ruling
In the case of the Meta fake ads, there were several complaints to the company, with the plaintiffs reporting almost 260 violations to the company in August 2024 alone, said the Frankfurt court.
The court noted that new ads were continuing to appear similar or identical, and that Meta has had more than 62 days to take some of the ads complained of.
The ruling also raises the question of liability under Article 6 of the EU Digital Services Act (DSA), which provides some protection for platforms hosting user-generated content that are not aware of its illegality and remove it quickly.
In the opinion of the Frankfurt court, with its algorithms and ads, it had control over the dissemination of ads, which it could not use in this case. Quoting a ruling of the Court of Justice of the European Union of June, the judges said it was necessary to take into account that social networks do not have editorial control over the content of users’ posts.
However, they did not go entirely in Meta’s favor, indicating that the company failed to ensure the security of users’ data.
Meta Advertising Revenue Reaches $59.4 Billion
As advertising is the company’s main source of income, the outcome of the case was expected. In the second quarter of 2026, Meta’s total revenue increased by 28 percent compared to the previous year and amounted to $60.8 billion.
The revenue from advertising increased to approximately $59.4 billion, with a year-over-year rise of 14% in ad impressions and 12% in the average price per ad. Meta made a net income of $15.85 billion for the quarter.
Meta strongly opposed the ruling in the case of fake ads and was considering further lawsuits, the company said. In addition, Meta has taken steps to identify and eliminate scam ads, the company said.
The judgment of the German court is not final and can be appealed to the Frankfurt Higher Regional Court.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
