Benzinga - by Ananya Gairola, Benzinga Staff Writer.
In a privacy dispute with the U.S. Federal Trade Commission, Meta Platforms Inc. (NASDAQ:META), the parent company of Facebook, Instagram, and WhatsApp, has suffered a legal setback.
What Happened: The U.S. District Court for the District of Columbia’s Judge Timothy Kelly dismissed Meta’s appeal for the court to intervene in its ongoing row with the FTC, reported Reuters.
In May, the FTC charged Mark Zuckerberg-led Meta with deceiving parents about who their children could communicate with via the Messenger Kids app.
The FTC recommended revising a 2019 settlement, which necessitated Facebook to pay $5 billion, to stop the company from monetizing data collected from users younger than 18.
Meta, which earns over 98% of its revenue from digital ads, dismissed the FTC’s charges as baseless. Following the court’s decision, the company was considering its legal choices.
“We are considering our legal options in light of the Court’s ruling and will continue to vigorously fight the FTC’s unlawful attempt unilaterally to rewrite our agreement,” said a Meta spokesperson.
Previously, the FTC has reached settlements with Facebook twice over privacy violations.
Why It Matters: This legal setback comes amidst ongoing allegations against Meta of downplaying the extent of harmful content shared on its platforms.
A lawsuit filed on behalf of 33 states accused Meta of underreporting instances of hate speech, misinformation, and other harmful content on Facebook and Instagram.
Moreover, earlier this month, a Meta whistleblower raised concerns about Instagram’s safety measures for teenagers, alleging that his repeated warnings to Meta’s top executives, including Zuckerberg, were ignored.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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