Meta is being threatened with legal action by Dutch gambling trade body VNLOK over alleged failures to prevent illegal gambling ads from appearing on its platforms.
VNLOK, members of which are bet365, Unibet and LeoVegas, among others, has revealed that it is preparing a formal complaint with the European Commission (EC) over the number of ads appearing on Facebook and Instagram, allegedly targeting Dutch consumers.
According to the trade association, Meta has continuously failed to adopt a proactive approach towards obstructing the flow of such ads on its platforms, therefore undermining the integrity of the Dutch licensed sector – a claim also seemingly supported by the regulator, Kansspelautoriteit.
“Meta’s measures fall short structurally, while vulnerable groups – including young people – are massively affected by illegal gambling advertisements,” VNLOK said.
Of note, illegal gambling is particularly rampant in the Netherlands, and recent legislative changes such as increased taxes and an upcoming ban on all online gambling adverts threatens to exacerbate the issue even more.
This has led to frequent strategic meetings between operators and authorities.
Meta ‘mops with the tap on’
Perhaps an answer to those asking why not try engaging in a dialogue first, the trade body added that Meta has “refused to enter into a substantive conversation for quite some time”, therefore forcing the hand of VNLOK.
Additionally, the above subheading is how VNLOK described Meta’s approach to the problem – only acting when prompted by alerts from third parties.
“Meta does ask for examples of illegal advertising, but does not want to work together to develop structural solutions. That is incomprehensible.
“Illegal providers keep returning with new ads…Large online platforms are required by law to continue investing in detection, monitoring and limitation of illegal gambling ads aimed at Dutch consumers.
“As long as Meta does not comply with its legal obligation, the illegal market will continue to grow and vulnerable players will be exposed to major risks. That is why we are now going to court and to Brussels.”
VNLOK’s play here will be to try and frame Meta’s behaviour as a direct infringement of the European Digital Services Act (DSA), which requires major tech firms to actively remove and prevent illegal content from appearing on their platforms.
The court has the powers to issue an order for full DSA compliance if violations are constituted, with subsequent daily penalties until the breaches have been cleared.
Additionally, VNLOK will ask for an official investigation from the European Commission, which could also lead to additional sanctions over DSA violations.
Bundle all of this together with the recent outcry from other European countries like the UK, and you can argue that the question is slowly moulding into when rather than if Meta will give in to the pressure.
