Italy Fines Facebook Parent Meta for Gambling Ads

In a groundbreaking move, Italy has imposed significant fines on Meta, the parent company of social media giant Facebook, for its involvement in the promotion of gambling advertisements. The Italian regulatory authorities have taken a decisive stand against Meta’s alleged violation of advertising regulations related to the gambling industry. This development marks a noteworthy step in the ongoing global scrutiny of tech companies and their responsibilities in curbing the proliferation of potentially harmful content.

As Italy takes a stern approach towards Meta’s practices, the incident highlights the growing need for stringent measures to regulate online advertising, particularly in sectors that pose risks to consumers.

According to reports, the Italian communications authority, Agcom, has levied a punishment of 5.85 million euros ($6.4 million) against Meta Platforms Ireland Limited, the parent company of Facebook, for allegedly violating the country’s prohibition on advertising gambling products and services.

An examination that discovered the presence of promotional content related to gambling on 18 profiles or accounts (five on Instagram and thirteen on Facebook) combined with 32 sponsored contents led to the imposition of the fine. The investigation yielded the results of the investigation.

“The procedure, initiated following numerous reports received by the Authority and concluded with Resolution no. 331/23/CONS, has ascertained the presence of promotional or otherwise content advertising, including indirect, relating to games or bets with money winnings, on 18 profiles/accounts (5 on Instagram and 13 on Facebook), as well as 32 ‘sponsored’ contents,” according to a translated statement from Agcom.

Meta Violates Ban on Gambling Advertising in Italy

All kinds of media, including social networks, are subject to the prohibition on advertising gambling in Italy, which has been in effect since 2018.

It is part of Agcom’s attempts to enforce this prohibition and ensure compliance with the legislative decree that was issued on July 12, 2018, and is commonly referred to as the “Dignity Decree.” Agcom has decided to impose a punishment on Meta. According to the statement issued by the regulatory authorities, the company was found to have breached the prohibition on gambling advertising that was established in Article 9 of the legislative order.

The inquiry, which was sparked by a number of reports, came to the conclusion that Meta had hosted promotional and advertising content, including indirect forms, promoting online gaming and betting activities with cash winnings on 18 profiles and 32 sponsored contents.

In a similar action that was brought against other technology companies, such as Google Ireland Ltd. and Twitch Interactive Germany GmbH, Meta was held accountable for the sponsored content because it was the owner of the dissemination platforms, specifically “Facebook” and “Instagram.”

Notice and Take-Down, Notice and Stay-Down

It was asserted by the regulatory body that Meta did not only serve as a “passive” host for user-uploaded information; rather, it actively supplied an advertising service, which made the company aware of the potentially illegal nature of the content.

Additionally, the decision took into consideration the fact that Meta Platforms Ireland Limited was only held accountable for five of the eighteen profiles that were found on Facebook and Instagram.

Meta erased just 11 of the 18 identities and accounts that were reported after getting a notification of the disagreement, which indicated when the firm became fully aware of the illegal information. This judgment is in accordance with the provisions that are outlined in Article 6 of the Digital Services Regulation (DS Regulation).

Agcom has issued a punishment that is accompanied with a notice and take-down order, which indicates that Meta is required to remove the content that is infringing, as well as a notice and stay-down order, which emphasizes the necessity of preventing the recurrence of violations that are similar to the one that was committed.