Meta Faces Uphill Battle as Court Rules Against Privacy Measures for Users Under 18

In a legal setback for Meta Platforms that own Facebook, Instagram, and WhatsApp, the company continues to face scrutiny over privacy concerns involving users aged under 18.

Meta stated that the allegations brought about by the FTC about privacy and children were without merit".

The decision came after a federal judge of the U.S. District Court for the District of Columbia, Timothy Kelly, rejected Meta's plea to take control of an ongoing dispute with the US FTC (Federal Trade Commission).

Last May, the FTC brought about accusations against Meta for misleading parents on the extent of control they would have over the interactions of their children within the Messenger Kids app.

Besides, the FTC proposed certain modifications to a 2019 settlement, which originally imposed a $5 billion fine on Facebook. The changes proposed by the FTC aim to prevent Meta from making profits by banking on the data collected from users under 18 years of age.

The body wants to extend these restrictions to its virtual reality business besides imposing other limitations on facial recognition technology.

We are considering our legal options in light of the Court's ruling and will continue to vigorously fight the FTC's unlawful attempt unilaterally to rewrite our agreement.Meta Spokesperson

FTC refrained from commenting on the recent decision made by the court.

Meta Earns Most of Its Revenue From Digital Ads

In light of the ongoing lawsuit, it's interesting to note that Meta largely capitalizes on digital advertisements targeted using the personal data of account holders. This accounts for 98% of the company's income. Currently, Meta is struggling hard to retain the attention of younger people in competition with TikTok.

According to research, as much as 62% of individuals aged between 13 and 17 use Instagram, and 17% of teenagers within this age bracket use WhatsApp.

This explains why the regulatory battle holds significance regarding user protection and privacy.

FTC states that the agency retains the authority to decide whether or not settlements can be modified. It argues that the district court lacks jurisdiction in this matter. Any decision made by the FTC can be appealed to the relevant appeals court.

FTC Continues To Target Meta For Violations Over The Last Decade

This is not the first time the FTC has targeted Meta for violating privacy norms. In 2012, the social media giant settled with the FTC, and in 2019, Facebook agreed to pay a record $5 billion fine for violating a 2012 consent order. This settlement was finalized in 2020.

Moreover, the FTC sought a court order to compel Facebook to sell Instagram and WhatsApp in 2019. Facebook had acquired these platforms in 2012 and 2014, respectively. Meta has yet to face trial in this case, which further complicates the company's ongoing legal challenges.

As the parent company of three major social media platforms struggles with the fallout from this recent ruling, the broader implications remain to be seen.

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