U.S. Court Rejects Meta Platforms’ Bid to Delay FTC Privacy Probe

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A US judge decided against Meta Platforms, refusing to grant the Federal Trade Commission a stay in reopening a probe.
A US judge decided against Meta Platforms, refusing to grant the Federal Trade Commission a stay in reopening a probe.

A U.S. court ruled against Meta Platforms, the parent company of Facebook, refusing to grant a delay to the U.S. Federal Trade Commission (FTC) from reopening a probe into alleged privacy violations by Facebook.

The U.S. Court of Appeals for the D.C. Circuit rejected Meta’s challenge to delay the FTC’s investigation, stating that Meta had not demonstrated a probability of success in its lawsuit challenging the agency’s authority.

FTC’s Intensifying Probe into Facebook’s Privacy:

The FTC seeks to tighten a 2020 privacy settlement with Facebook, focusing on issues such as profiting from minors’ data and expanding restrictions on facial recognition technology, alleging that Meta misled parents about children’s privacy protections.

Meta’s Legal Challenge and Constitutional Concerns:

Meta filed a lawsuit against the FTC, arguing that the agency’s actions violate its constitutional rights, including the right to a trial by jury, as it faces scrutiny over its privacy practices.

The FTC accuses Meta of misleading parents regarding privacy risks, prompting the agency to pursue stricter regulations and oversight of Meta’s privacy controls.

Meta and the FTC did not immediately comment on the court’s ruling.

District Court’s Decision Upheld:

The court’s decision upheld a previous ruling by U.S. District Judge Randolph Moss, who refused to halt the FTC’s investigation into Meta’s privacy controls, citing the agency’s strong public interest in scrutinizing Meta’s practices.

The mention of the FTX founder’s conviction for financial fraud in November is unrelated to the article’s main focus, which pertains to Meta Platforms and the FTC’s privacy probe.

FTC’s Ongoing Antitrust Lawsuit Against Meta:

Separately, the FTC has filed an antitrust lawsuit against Meta in Washington, accusing the company of anti-competitive practices in the social media market. The lawsuit could potentially lead to divestitures of platforms like Instagram and WhatsApp owned by Meta.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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