Meta Clashes with U.S. Government Over Privacy Order Tightening

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Intricate Legal Battle Unfolds Over FTC’s 2019 Privacy Order Amendments

In a legal showdown, Meta, the parent company of social media giants Facebook, Instagram, and WhatsApp, has locked horns with the U.S. government. The contentious issue is the U.S. Federal Trade Commission’s (FTC) pursuit of strengthening a 2019 privacy order, setting the stage for a high-stakes confrontation.

FTC Allegations and Proposed Amendments

  

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In a significant move back in May, the FTC accused Meta of deceptive practices concerning parents’ control over their children’s interactions within the Messenger Kids app and various other privacy-related concerns. The FTC proposed amendments to the existing privacy agreement to address these issues. Notably, these changes included a prohibition on profiting from minors’ data.

Meta’s Defense

During the heated legal battle, James Rouhandeh, representing Meta, asserted that Judge Timothy Kelly of the U.S. District Court for the District of Columbia had the authority to rule on the case. He argued that the FTC needed Meta’s consent to modify the existing agreement since it functioned as a contract. In his words, “They (the FTC) need consent to modify. Because this is a contract, they need consent to modify (it).”

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FTC’s Counterarguments

On the opposing side, Zachary Cowan of the Justice Department, speaking on behalf of the FTC, contended that the agency retained the authority to decide whether settlements should be altered, emphasizing that the district court lacked jurisdiction.

Judge’s Stance and Upcoming Decision

Judge Timothy Kelly expressed skepticism regarding Meta’s jurisdictional arguments but assured that a ruling would likely be delivered before November 30th. This impending decision holds the key to resolving the conflict, determining whether Meta and the FTC will ultimately resort to the district court or an FTC judge to decide the fate of the 2019 agreement.

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FTC’s Proposed Amendments

Central to this legal struggle are the FTC’s proposed amendments, including prohibiting Facebook from monetizing data collected from users under 18 and extending these restrictions to its virtual reality ventures. Furthermore, the proposed changes encompass heightened limitations on using facial recognition technology, adding a layer of complexity to the dispute.