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Challenges Persist as Court Denies Meta’s Plea in FTC Privacy Settlement Case

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Challenges Persist as Court Denies Meta’s Plea in FTC Privacy Settlement Case

Meta Platforms Inc. META received a blow as the U.S. Court of Appeals for the D.C. Circuit rejects its bid to stall the U.S. Federal Trade Commission’s re-examination of alleged privacy violations tied to its Facebook arm.

Legal Setback: Despite Meta’s attempt to postpone the FTC’s scrutiny of its privacy policies, the court deemed that Meta did not satisfy the rigorous conditions for an injunction pending appeal for any of its five constitutional challenges, as per a report by Bloomberg.

The court decisively ruled, “None has a likelihood of success.”

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This judgment adds to a string of adverse rulings for Meta this month concerning the FTC’s authority to revisit a 2020 privacy settlement. The settlement addressed allegations of Meta breaching terms post a $5 billion fine in 2023. On March 14, U.S. District Judge Randolph Moss had earlier denied Meta’s plea for a preliminary injunction.

The FTC’s proposed revisions to Meta’s settlement involve a prohibition on exploiting minors’ data and an expansion of constraints on facial recognition technology. Meta stands accused of misleading tactics related to parental assurances regarding child protection measures.

Significance of the Ruling: This verdict follows a series of privacy-related controversies surrounding Meta. In March, the tech giant led by Mark Zuckerberg faced accusations of monitoring user traffic data from Snapchat, YouTube, and Amazon to gain a competitive edge.

Last year, Facebook Ireland, a Meta subsidiary, was found culpable of a user privacy breach spanning 2010-2020 by a Dutch court. This was succeeded by another lawsuit in the EU, where Meta was penalized for a data privacy infringement.

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Disclaimer: This content was in part generated with the aid of AI tools and was scrutinized and published by Benzinga editors.