US court allows FTC to reopen Meta privacy case despite $5 billion fine

FTC's investigation on Meta: A US appeals court has ruled that Meta, formerly known as Facebook, cannot prevent the Federal Trade Commission (FTC) from reopening an investigation into its privacy practices, despite Meta's arguments that it had already paid a hefty fine and agreed to various measures.

The FTC seeks to strengthen a 2020 settlement with Facebook, now Meta, by prohibiting the exploitation of minors' data and extending restrictions on facial recognition technology. The agency accuses Meta of deceiving parents about safeguards for children.

The recent decision by the US Court of Appeals for the DC Circuit represents a setback for Meta, which had requested a halt to the FTC case while it pursues a separate legal challenge against the FTC's investigation on constitutional grounds.

The appeals court underlined the importance of the FTC's privacy concerns as they relate to public interests and affirmed Meta's right to contest any final decisions made by the agency.

In response, Meta stated that the court order does not address the substance of the FTC's allegations, which it considers baseless.

The FTC, on the other hand, declined to comment on the matter.

Meta argues that the proposed changes by the FTC would restrict its innovation, corporate governance, and ability to cater to users and advertisers. It contends that the prior settlement terms, approved by a US judge in 2020, cannot be unilaterally altered by the FTC.

Meanwhile, Meta and other social media giants face numerous lawsuits in the US alleging that they have addicted children to their platforms.

Additionally, the FTC has filed a lawsuit against Meta, accusing it of monopolising the personal social network market, an allegation that Meta denies vehemently.

(With Reuters inputs)