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Meta Faces Fresh Trouble: EU Urged To Slap $290-Million Fine For Failure To Tackle Fraud Ads

Poland asks the European Commission to fine Meta $290 million, alleging the company failed to remove fraudulent ads despite repeated reports.

Meta Faces Fresh Trouble: EU Urged To Slap $290-Million Fine For Failure To Tackle Fraud Ads
EU Urged To Slap $290-Mn Fine For Failure To Tackle Fraud Ads
(Photo: Unsplash)

Meta Platforms is facing fresh regulatory pressure in Europe, with Poland urging the European Commission to impose a $290 million (€250 million) fine on the social media giant over its handling of fraudulent advertisements.

Reuters reported that Poland's Digital Affairs Minister Krzysztof Gawkowski said on Thursday that Meta had failed to adequately tackle scam and misleading advertisements running on its platforms, accusing the company of prioritising monetisation over user safety.

The request follows tests conducted by CERT Polska, Poland's national cybersecurity incident response team. The agency identified 122 advertisements as fraudulent. According to Gawkowski, Meta declined to remove 106 of them, or 86.8% of the reported ads. Ten advertisements were taken down, while six received no response.

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“We have hard evidence that the platform isn't acting in the best interests of users,” Gawkowski said at a press conference, arguing that the time for simply asking Meta to improve its practices had passed.

He called for immediate action against scams, false advertising and the promotion of illegal applications, saying penalties were now necessary to deter such practices.

Meta, in a statement to Reuters, said it was continuing to invest in efforts to combat fraud on its platforms. The company said scammers were using increasingly sophisticated tactics and that it was working with industry partners and law enforcement to identify and remove fraudulent activity.

Gawkowski said he would also seek support from other European leaders at the upcoming G20 summit, arguing that the issue should be addressed jointly across Europe.

He said the proposed $290 million penalty could serve as a meaningful deterrent given the scale of Meta's operations and the alleged harm caused to users in Poland.

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Earlier this year, Polish billionaire Rafal Brzoska sued the company over fake advertisements on Facebook and Instagram that allegedly used his image and spread false information about his wife.

In April, a Warsaw appellate court ruled that Meta could be held responsible for advertisements hosted on its platforms. Meta had argued that it should not be liable for fraudulent actions carried out by its users.

The move from Poland also comes a day after Meta agreed to pay $18 billion under a settlement with US states over allegations that its social media platforms were designed to be addictive to children.

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