Poland urges EU to fine Meta $291.3 million over scam ads

Poland urges EU to fine Meta $291.3 million over scam ads
Meta CEO Mark Zuckerberg makes a keynote speech at the Meta Connect annual event at the company's headquarters in Menlo Park, California, U.S., 25 September 2024.
Reuters

Poland has asked the European Commission to impose a €250 million ($291.3 million) fine on Meta, accusing the technology company of failing to adequately tackle fraudulent advertisements on its platforms.

Polish Digital Affairs Minister Krzysztof Gawkowski said on Thursday that Poland had evidence Meta was failing to remove scam advertisements even after they were reported.

“We have hard evidence that the platform isn't acting in the best interests of users, but rather in its own self-interest, which allows it to monetise deceptive advertising,” Gawkowski said.

Tests conducted by Poland’s national cybersecurity incident response team, CERT Polska, identified 122 advertisements classified as fraudulent.

According to Gawkowski, Meta decided not to remove 106 of them, representing 86.8 per cent of the reported advertisements. 10 were removed, while the company provided no response in six cases.

“The time has passed for us to say ‘improve yourselves’,” Gawkowski said. “Now the time has come for penalties.”

Meta says it is investing to fight fraud

Meta rejected suggestions that it was failing to act against online scams, saying it continues to invest heavily in combating fraudulent activity.

“Scammers are persistent criminals who use increasingly sophisticated tactics,” Meta said in a statement to Reuters, adding that it was investing in technology and partnerships with law enforcement and industry to identify and remove scams.

Gawkowski said the proposed $291.3 million penalty would represent a meaningful deterrent given the scale of Meta’s operations and the harm caused to Polish users.

He also said Poland would seek support from other European leaders at the upcoming G20 summit for a coordinated response to Meta’s practices.

The dispute follows a Polish court ruling earlier this year concerning fraudulent advertising on Meta’s platforms.

In 2024, Polish billionaire Rafal Brzoska sued Meta after fake advertisements on Facebook and Instagram used his image and published false information about his wife.

Warsaw’s appellate court ruled in April that Meta was responsible for advertisements hosted on its platforms. Meta had argued that it could not be held responsible for fraudulent actions carried out by users.

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