Meta is suing the U.S. Federal Trade Commission. Why so?

Recently, Meta has sued the U.S. Federal Trade Commission (FTC). The Facebook parent has claimed that the latter was making what it calls an "obvious power grab". Meta claims that the FTC's actions can lead to Meta bearing "immediate and irreparable" harm.

What is the case all about? Let's find out.

Details of the case

On November 29, Meta sued the United States FTC in order to stop the latter from reopening a previous privacy settlement in which Meta was instructed to an amount of $5 billion in order to settle the charges imposed for violating a previous FTC order.

The privacy settlement was made in the year 2019. The settlement put huge privacy restrictions on the social media company. The FTC calls it the largest fine ever imposed on any company for violating the privacy of customers. It was in 2019 when the $5 billion penalty against the company was announced. However, it is called the 2020 privacy settlement.

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FTC desires some changes by Meta

In the month of May, the FTC put forward some amendments to the three-year-old agreement and claimed that the Facebook parent did not completely comply with the previous terms. It was also alleged by the FTC that Meta actually misled people regarding the Messenger Kids app. Meta has also been alleged that it misrepresented the ways in which a few app developers could actually the data of private users.

FTC has proposed some changes to be done by Meta. One of the changes that FTC wants actually bars Meta from making profits if the information is gathered from users below the age of 18, along with the data collected from the virtual reality products. Meta would also be restricted to making use of the technology of facial recognition. The launch of some of its novel features and products may also be restricted. Additionally, according to the regulator, Meta will have to offer more user protections than before.

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Meta's reaction

A not-so-desirable reaction from Meta is obvious in such a situation. Andy Stone, Meta's spokesperson expressed on May 3 through a statement on the platform X (formerly Twitter) that the action of FTC is nothing but a political stunt. He claimed that FTC did not permit Meta to have a discussion on the agreement.

Meta's statement on the FTC's political stunt. pic.twitter.com/XEPHvriKFY

— Andy Stone (@andymstone) May 3, 2023

In November, Meta complained against the FTC and said that limiting the collection of the data of children will actually hamper its development.

Met also claimed that the FTC lacks authority over the matter. It said that the proposed changes by FTC to the 2020 agreement actually violate due process. It said that the FTC itself is playing an unconstitutional dual role. 

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