A German court has ruled that Meta is liable for fake advertisements posted by third parties on Facebook and Instagram.

The court ordered the US technology company to remove the advertisements and pay damages.

The case involved a German financial portal and its founder. Their trademarked logo and image appeared in advertisements promoting investments that the plaintiffs said were fraudulent.

The portal operator reported nearly 260 violations to Meta in August 2024 alone, according to the court.

Some reported advertisements remained online for as long as 62 days before Meta removed them.

Court Rejects Meta’s Defence

The court said Meta could not rely on the Digital Services Act’s lack-of-knowledge defence in the case.

It found that Meta exercises control over content through its algorithms and advertising practices.

Asian Games Face Organisation Problems Ahead of Japan Opening

The court distinguished this from platforms that simply display content in chronological feeds.

The ruling also referred to a June decision by the European Court of Justice involving online platforms and regulatory obligations.

Meta Disputes the Ruling

Meta said it disagreed with the German court’s decision.

“We respectfully disagree with this decision and are considering next steps,” a Meta spokesperson said.

The company also said it had taken significant measures to combat fraudulent advertisements.

These measures include proactive detection systems and the removal of content reported by users.

Meta Must Disclose Ad Details

The September 16 ruling also requires Meta to disclose information about the fake advertisements.

The company must provide details about the advertisements and the revenue generated from them, according to the court.

The ruling is not yet final.

Meta can challenge the decision by filing an appeal, the court said.

The case could have wider implications for how major social media platforms handle fraudulent advertising and their responsibilities under European digital regulations.