Zuckerberg's Meta Hit By A $3.8B Lawsuit In The UK Over Data Collection Practices

A $3.8 billion (£3 billion) lawsuit has been filed against Mark Zuckerberg's Meta Platforms Inc. META in the U.K., potentially impacting 45 million people.

What Happened: Dr Liza Lovdahl Gormsen initiated the lawsuit, accusing Facebook of demanding extensive data access on non-Facebook platforms like Instagram for access. Meta has refuted the claim, labeling it “entirely without merit.”

The lawsuit alleges that Facebook abused its market dominance in the social media sector by making platform access a “take-it-or-leave-it” offer, necessitating users to allow Facebook to use “Off-Facebook” data.

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The claim argues that Facebook’s actions resulted in U.K. users experiencing loss and damage, primarily because they were not adequately compensated for the commercial value of their data collected and monetised by Facebook.

The Competition Appeal Tribunal, a specialist body focusing on competition and economic regulation, will hear the case. The lawsuit seeks damages ranging from $2.6 to $3.9 billion (£2.07 – £3.1 billion).

Those with a Facebook account between Feb. 2016 and Oct. 2023 would be eligible for compensation if the lawsuit succeeds. Meta had previously paid $725 million (£583 million) in a U.S. privacy case in 2023.

Why It Matters: This lawsuit is not the first of its kind against Meta. The company faced a $600 million lawsuit from a Spanish media association in Dec. 2023, alleging unfair competition within the advertising market.

In June 2023, a controversial bill passed in Louisiana sparked debates over minors’ online access.

In Oct. 2023, Meta was accused of targeting youth with addictive features in a bipartisan attorneys general suit. In January, Meta proposed a $51 million settlement in response to a class-action lawsuit in Canada.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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