Meta's Battle with FTC Thickens, Court Rejects Bid to Stop Privacy Investigation

Meta Platforms, Inc META faces a continuing probe into its Facebook unit’s privacy practices by the U.S. Federal Trade Commission (FTC), as a U.S. appeals court has ruled against Meta’s attempt to halt the investigation. 

Despite Meta’s argument that it has already paid a $5 billion fine and implemented numerous safeguards under a 2020 privacy settlement, the FTC seeks to strengthen the agreement, particularly regarding using minors’ data and applying facial recognition technology. 

The agency has criticized Meta for not adequately protecting children’s privacy, Reuters reports.

Also Read: FTC Exposes Amazon’s Hidden Algorithm Amid Antitrust Concerns

This U.S. Court of Appeals ruling for the D.C. Circuit marks a significant setback for Meta, which sought to freeze the FTC case while challenging the inquiry’s constitutional basis in a separate lawsuit. 

The court highlighted the FTC’s privacy concerns as embodying significant public interests, ensuring Meta would have a chance to dispute any final decisions made by the agency.

Meta has responded by dismissing the FTC’s allegations as baseless, whereas the FTC has refrained from commenting on the court’s decision. 

Meta argues that the FTC is overreaching by trying to “unilaterally rewrite” the terms of the 2020 settlement, which a U.S. judge confirmed. 

The Big Techs are battling multiple antitrust lawsuits by global regulatory authorities. 

Recent reports indicated that the U.S. Department of Justice and the Federal Trade Commission are looking to review the partnership between Microsoft and OpenAI soon after European watchdogs decided to review the collaboration.

Investors can gain exposure to Meta via Invesco Nasdaq Internet ETF PNQI and Invesco Next Gen Media And Gaming ETF GGME.

Price Action: META shares traded lower by 0.68% at $496.34 on the last check Wednesday.

Also Read: Meta Platforms Is Wall Street’s Top Internet Pick, Analysts Laud AI Investments and Advertising Strength

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

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