Appeals Court: FTC Able To Reopen Meta Privacy Case

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Facts

  • A US appeals court ruled late Tuesday that the US Federal Trade Commission (FTC) cannot be prevented from reopening its investigation into Facebook’s privacy unit, dealing a blow to parent company Meta's efforts to freeze the case.1
  • The DC Circuit Court of Appeals decision allows the FTC to push for increased measures to tighten a 2020 privacy settlement with Meta, which argued that it had already paid a $5B fine and implemented safeguards as part of the deal.2
  • The FTC argued it must strengthen its privacy agreement with Meta, citing particular concerns over the protection of minors’ data and facial recognition technology. The decision comes as Meta continues its lawsuit fighting the positionality of the FTC's inquiry.3
  • The court said that the FTC's privacy concerns are related to vital public interests adding that Meta will have the opportunity to challenge any final action. Meta argued the ruling that doesn't address the firm's allegations about flaws in assessing privacy violations.4
  • The FTC says that its previous settlement was not meant to resolve 'all claims in perpetuity,' and that new compliance and oversight requirements are needed. The FTC is also suing Meta for monopolizing the social media market.1
  • The FTC hasn't commented on the ruling, and Big Tech companies are battling antitrust lawsuits from regulators around the world.5

Sources: 1Reuters, 2Digital Watch Observatory, 3Best Stocks, 4Republic World and 5Benzinga.

Narratives

  • Narrative A, as provided by The Register. Meta is fighting tooth and nail to prevent the FTC from imposing common sense regulations to protect children's personal data. The Facebook parent has been under regulatory heat for more than a decade, and it consistently circumvents outdated agreements to grow its profits. The 2020 settlement with the FTC was never intended to be a final agreement, and the FTC has every right to tighten restrictions over time.
  • Narrative B, as provided by Techxplore. After Meta paid a $5B fine and adhered to the FTC's terms, the regulator is attempting to completely rewrite its settlement with Meta and unconstitutionally impose ridiculous restrictions that would violate the previous agreement. The FTC doesn't have the authority to renege on the terms of its settlement. Meta will continue to fight for fairness and the rights of companies to not have their settlements arbitrarily changed at the hands of bureaucratic agencies.

Predictions