Meta to pay $31.85 mln to Australia to settle Cambridge Analytica lawsuit

Meta Platforms has agreed to a A$50 million settlement ($31.85 million), Australia's privacy watchdog said on Tuesday, closing long-drawn, expensive legal proceedings for the Facebook parent over the Cambridge Analytica scandal.

The Office of the Australian Information Commissioner had alleged that personal information of some users was being disclosed to Facebook's personality quiz app. This is Your Digital Life, as part of the broader scandal.

The breaches were first reported by the Guardian in early 2018, and Facebook received fines from regulators in the United States and the UK in 2019.

Australia's privacy regulator has been caught up in the legal battle with Meta since 2020. The personal data of 311,127 Australian Facebook users was "exposed to the risk of being disclosed" to consulting firm Cambridge Analytica and used for profiling purposes, according to the 2020 statement.

It convinced the high court in March 2023 to not hear an appeal, which is considered to be a win that allowed the watchdog to continue its prosecution.

In June 2023, the country's federal court ordered Meta and the privacy commissioner to enter mediation.

"Today's settlement represents the largest ever payment dedicated to addressing concerns about the privacy of individuals in Australia," the Australian Information Commissioner Elizabeth Tydd said.

Cambridge Analytica, a British consulting firm, was known to have kept personal data of millions of Facebook users without their permission, before using the data predominantly for political advertising, including assisting Donald Trump and the Brexit campaign in the UK.

A Meta spokesperson told Reuters that the company had settled the lawsuit in Australia on a no admission basis, closing a chapter on allegations regarding past practices of the firm. 

Separately, the Australian government recent said that it was planning to announce new rules that would charge big tech firms, such as Meta and Google millions of dollars if they did not pay Australian media companies for news hosted on their platforms.

"The news bargaining initiative will ... will create a financial incentive for agreement-making between digital platforms and news media businesses in Australia," Assistant Treasurer and Minister for Financial Services Stephen Jones had said at a press conference earlier this month.