Meta [META:US], the parent company of Facebook, Instagram, and WhatsApp, found itself embroiled in a legal battle with the U.S. Federal Trade Commission (FTC) over proposed changes to a 2019 privacy order, as reported by Reuters on October 17. The FTC accused Meta of misleading parents regarding their control over their children’s interactions on the Messenger Kids app and suggested stringent measures, including a ban on profiting from minors’ data. Lawyers representing Meta argued in court that the FTC needed Meta’s consent to modify the existing agreement, emphasizing the contractual nature of the issue. On the other hand, the FTC, represented by the Justice Department, asserted its authority to make these changes without Meta’s agreement. At the heart of the dispute was the question of jurisdiction—whether the case would be resolved in district court or by an FTC judge. The proposed changes, if implemented, would significantly impact Meta’s revenue streams, particularly its reliance on personalized ads, and underscored the broader concerns surrounding data privacy and tech companies.

This legal confrontation sheds light on the ongoing regulatory challenges faced by major tech companies. Meta’s clash with the FTC highlights the persistent scrutiny these platforms face regarding their handling of user data, especially concerning young users. The outcome of this case could have substantial implications not only for Meta’s revenue model but also for the broader landscape of digital privacy regulations, setting precedents for future interactions between regulatory bodies and tech giants.

Sources:

https://www.reuters.com/legal/meta-us-government-spar-court-over-toughened-privacy-order-2023-10-17/