![](https://www.pymnts.com/wp-content/uploads/2023/10/Shutterstock_2066989778.jpg)
Lawyers representing Meta, the parent company of Facebook, Instagram, and WhatsApp, clashed with the U.S. government on Tuesday regarding the U.S. Federal Trade Commission’s (FTC) plan to strengthen a privacy order dating back to 2019, reported Reuters.
In May, the FTC accused Meta of providing misleading information to parents concerning the extent of control they had over their children’s interactions within the Messenger Kids app, among other concerns. As a response, the FTC proposed modifications to the existing privacy agreement, which would prohibit profiting from minors’ data.
James Rouhandeh, representing Meta, argued before U.S. District Court Judge Timothy Kelly in the District of Columbia that the FTC lacked the authority to enforce these changes because Meta had not consented to them. He stated, “They (the FTC) do need consent to modify. Because this is a contract, they need consent to modify it.”
Related: Meta Wins Ruling Against FTC In VR Purchase Case
On the other side of the argument, Zachary Cowan, representing the FTC within the Justice Department, contended that it was the FTC’s prerogative to decide whether adjustments to settlements were necessary, and the district court had no jurisdiction over this matter.
Judge Kelly expressed his skepticism regarding Meta’s jurisdictional claims and indicated that he would likely make a ruling before November 30.
The primary point of contention revolves around whether Meta and the FTC, in the event of failing to reach an agreement, would turn to the district court or an FTC judge to determine the fate of the 2019 agreement.
The proposed changes put forth by the FTC include prohibiting Facebook from profiting from data collected on users under the age of 18, including within its virtual reality business. Additionally, Facebook would face more stringent restrictions on the use of facial recognition technology.
Source: Reuters
Featured News
Meta Eyes Multi-Billion Dollar Stake in EssilorLuxottica Amid High-Stakes Tech Rivalry
Jul 21, 2024 by
CPI
UK CMA Probes Macquarie’s Stake in Last Mile Infrastructure
Jul 21, 2024 by
CPI
NYDFS Bolsters Crypto Oversight with Dubai Regulator Veteran
Jul 21, 2024 by
CPI
Allegations of Collusion in PacifiCorp Wildfire Settlements, Buffett’s Utility Under Scrutiny
Jul 21, 2024 by
CPI
Meta Fined $220 Million by Nigeria’s Antitrust Agency Over WhatsApp Privacy Policy
Jul 21, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI