On Monday, the most recent phase of a legal battle over confidentiality was lost by Meta Platforms, the corporation that owns Facebook, Instagram, and WhatsApp. A federal judge in the United States determined that a US regulator may attempt to lower the amount of funds the social media giant receives from users who are younger than 18.
An application by Meta for a federal court to assume jurisdiction over the conflict with the United States Federal Trade Commission (FTC) was refused by Judge Timothy Kelly of the US District Court for the Columbia District.
The FTC charged Meta in May of, amongst other things, misrepresenting to parents the extent of their authority over who their kids interact with on the Messenger for Kids application.
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The Federal Trade Commission suggested modifying a 2019 deal that mandated Facebook pay five billion dollars. The Federal Trade Commission said that it will strengthen this prohibition, preventing Facebook from profiting from customer information obtained on anyone under the age of 18, particularly from its virtual reality ventures. Its ability to use facial recognition software would also be subject to more restrictions.
"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," a spokesman for the company said.
More than 98 percent of Meta’s revenue comes from digital advertisements that are tailored to individual users’ profiles. TikTok, a short film app, and Meta are competing for the attention of youthful people.
According to a Pew Research Centre survey conducted in early 2023, 62 percent of teenagers between the ages of 13 and 17 said they used Instagram, compared to 17 percent who said they used WhatsApp.
The Federal Trade Commission has maintained that the district court lacked jurisdiction and argued that it was the agency’s responsibility to determine if its agreements needed to be altered. An appeal of a commission decision may be filed with the appropriate appeals court.
The Federal Trade Commission’s claims are without merit, says Meta
The FTC’s claims about minors and confidentiality, according to Meta, were “without merit.” The Federal Trade Commission chose not to respond.
Facebook and the Federal Trade Commission have reached settlements twice before over concerns regarding privacy.
“Today’s decision does not address the substance of the FTC’s allegations, which are without merit,” Meta spokesperson Christopher Sgro said. “We will continue to invest in our privacy program and remain focused on protecting people’s privacy.”
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