In a bid to prevent the reopening of a significant $5 billion privacy settlement from 2020, Meta has taken legal action against FTC. This marks Meta's second attempt to block the impending sanctions through the legal system.
Legally Challenging FTC
Meta has filed a lawsuit against the Federal Trade Commission (FTC), aiming to halt the reopening of a significant $5 billion privacy settlement from 2020. The tech giant is seeking to retain the ability to monetize children's data across various platforms, including Facebook, Instagram, and WhatsApp.
Engadget reported that the move follows a federal judge's recent decision permitting the FTC to expand the scope of the 2020 privacy settlement, opening avenues for proposing stringent new regulations governing Meta's operations post the Cambridge Analytica scandal.
The lawsuit filed today urgently calls for a cessation of the FTC's ongoing proceedings, labeling it an obvious power grab and deeming it an unconstitutional adjudication by fiat."
A Meta spokesperson went further to criticize the FTC, likening it to playing the roles of "prosecutor, judge, and jury in the same case." Notably, this legal action marks Meta's second attempt to thwart the impending sanctions through the judicial system.
FTC's Demands
On its part, FTC claims that Meta has consistently violated the terms established in the 2020 privacy settlement, with a particular focus on user privacy. According to the regulatory body, Meta has also breached the Children's Online Privacy Protection Act (COPPA) by exploiting the data of underage users.
As posted on its press release, FTC has gained judicial approval to restrict the monetization of such data, a decision that Meta intends to challenge.
Beyond this, FTC is advocating for additional measures, including limitations on Meta's use of facial recognition technology and a comprehensive freeze on the introduction of new products and services. These proposed actions are contingent on the completion of a third-party audit to evaluate Meta's adherence to its privacy commitments.
Amid ongoing controversies, Meta has clashed with the FTC, facing legal actions from various states and the EU over alleged child data monetization.
Led by Samuel Levine, Director of the Bureau of Consumer Protection, FTC accuses Meta of recurrent privacy breaches, emphasizing the risks posed to young users.
Bloomberg reported that the conflict between Meta and the FTC has persisted, initially triggered by the agency's attempt to block Meta's acquisition of VR software developer Within.
Citing concerns about hindering innovation and competition, the FTC dropped its opposition after encountering legal setbacks. Simultaneously, the agency opened an inquiry into Meta's VR arm, alleging anti-competitive practices.
Reflecting a broader trend, businesses are increasingly challenging the FTC, portraying it as emblematic of government overreach. Illumina, a major biotech player, exemplifies this resistance, suing the FTC to contest a decision obstructing its $7 billion acquisition of the cancer detection startup Grail.
Related Article : Meta Resists FTC Order
