MetTLDR
- Spain opens a formal investigation into Meta over alleged privacy violations.
- Research centers say Meta used a hidden mechanism to track Android users.
- Spain cites possible breaches of GDPR, ePrivacy Directive, DMA and DSA.
- Meta will face testimony before a lower-house committee.
- The probe raises fresh scrutiny as Meta stock trades at $597.69.
Meta Platforms (META), trading at $597.69 on Tuesday’s close, faces rising pressure after Spain launched a formal investigation into alleged user-privacy violations.
Meta Platforms, Inc., META
The inquiry comes at a sensitive time for the company, which last reported earnings on October 29, revealing persistent regulatory scrutiny across global markets.
Spain’s Prime Minister Confirms Probe
Spanish Prime Minister Pedro Sanchez announced that his government will investigate Meta following findings from research institutions in Spain, Belgium and the Netherlands. The research suggests Meta deployed a “hidden mechanism” embedded within Android devices that enabled what Sanchez called “silent spying” on users’ web activities.
His office said the evidence points to systematic tracking of online behavior without user consent. Sanchez emphasized that “the law is above any algorithm or any large technology platform” and warned that companies violating rights “will pay the consequences.”
Potential Breaches of Key EU Digital Laws
The Spanish government said Meta may have violated several major EU regulations designed to protect users and ensure digital transparency. These include:
- General Data Protection Regulation (GDPR), which governs the handling of personal data within the EU.
- ePrivacy Directive, protecting electronic communications and requiring consent for tracking technologies.
- Digital Markets Act (DMA), targeting anti-competitive practices by large tech platforms.
- Digital Services Act (DSA), imposing obligations for clearer data practices and user protections.
A breach of any of these laws could carry significant financial and operational consequences. GDPR violations alone can lead to penalties reaching up to 4% of global annual revenue.
Meta Called to Testify Before Lawmakers
The Spanish government will require Meta to testify before a lower-house committee to address the allegations directly. Lawmakers intend to determine how the tracking mechanism worked, whether Meta knowingly deployed it, and how data was processed across its platforms, including Facebook and Instagram.
This step signals heightened political and regulatory pressure, reflecting broader EU concerns over opaque data-collection practices by large technology companies.
Growing Scrutiny as Stock Holds Near $600
Despite the controversy, Meta’s shares remain resilient. Investors continue evaluating how the investigation might affect Meta’s operations, compliance costs and long-term regulatory risks across Europe.
The probe also comes as Meta expands its AI and data-driven capabilities, prompting regulators to push for stricter transparency and tighter guardrails on privacy practices.
Spain’s action marks another chapter in Meta’s ongoing struggle to align its business model with evolving global privacy standards.