Problematic monetization. Facebook is suing the regulator for the right to profit from children's data
December 1, 19:10 Share:
Meta is suing the US regulator FTC (Photo: Reuters)
Meta Corporation, which owns Facebook and Instagram, is suing the US Federal Trade Commission ( FTC) in attempts to protect its right to monetize the data collected by its platforms from minor users.
In a complaint filed this week, Meta accuses the head of the FTC and other commissioners of abuse of power.. The tech giant claims the FTC is overstepping its bounds and violating its proprietary rights.
Meta states that commission members “ exercise executive power while being unconstitutionally insulated from presidential exemption,” and the agency itself allegedly has more powers than it was entitled to under the original Federal Trade Commission Act of 1914, which founded it. Moreover, the company stated that the FTC's attempts to punish Meta for violations are “ seizure of power.”
According to the document, Meta is demanding that the FTC dismiss its case against the company.. It also requires the court to recognize numerous violations by the trade commission.
As a reminder, in 2020 the US Federal Trade Commission ( FTC) and Meta ( formerly Facebook) entered into a settlement agreement. It was supposed to limit the company's monopoly on social networks and protect users from its unfair practices. The agreement included limiting Meta's ability to buy or invest in companies that compete with its products without prior approval from the FTC, disclosing information about the company's advertising and targeting efforts, creating an independent oversight body for the company to monitor compliance with the agreement, and the like.
In May, the FTC said Meta violated a 2020 settlement agreement. This comes after the company tried to attract more children to its ambitious project Metaverse Horizon Worlds. Then the FTC proposed applying new restrictions against the company. In particular, prohibit monetization of data for users under 18 years of age. Also, the new proposed mechanism would require Meta to obtain approval from a third-party evaluator before launching any new products, services or features.
Meta called the FTC's claims and proposals baseless. The company says it has invested billions of dollars to implement the changes to its privacy policies required by the 2020 settlement.. Meta also tried to appeal the FTC decision in court. Her new lawsuit seeks not only to overturn the restrictions, but also to question the legality of the FTC's authority to take any significant enforcement action.
The day before, as NV Techno wrote, dozens of American states filed a lawsuit against the Meta corporation. The reason was, in their opinion, the company’s insufficient efforts to prevent users under the age of 13 from registering on Facebook and Instagram.
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