A German court has ruled that Meta is liable for fraudulent advertisements shown on Facebook and Instagram, rejecting the company’s attempt to rely on legal protections for platforms that merely host third-party content. The decision focuses on Meta’s role in selecting and distributing paid ads.
Reuters reports that the Frankfurt Regional Court ordered Meta to remove the disputed material, pay damages, and disclose information about the ads and the revenue they generated. The ruling was dated September 16 and is not final, so Meta can appeal.
The case was brought by a German financial portal and its founder after scam posts allegedly used their trademarked logo and image without permission to promote investments. The court said the operator reported nearly 260 violations in August 2024, while some content took up to 62 days to remove.
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The court found that Meta could not use the Digital Services Act’s lack-of-knowledge defense in this case. Unlike a purely chronological service, Meta exercises control through recommendation algorithms and its advertising practices. That role helped move the company beyond the position of a passive host, according to the ruling.
Meta said it respectfully disagrees and is considering its next steps. The company also pointed to proactive detection and removal measures. Because an appeal remains possible, the judgment should not be described as the final word across Germany or the European Union.
The ruling arrives amid persistent concerns about impersonation and financial fraud. MacObserver has covered apps stealing Facebook credentials and a fake Apple event promoting a crypto scam.
For platforms, the decision draws a sharper line between storing content and actively choosing which paid messages users see. Its wider effect will depend on any appeal and how other courts apply the same reasoning.
The order concerns the facts of this dispute and does not make Meta automatically liable for every fraudulent post. Future cases will still depend on notice, platform conduct, ad delivery, and the remedy requested.
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