Why is Facebook parent Meta suing the US Federal Trade Commission?

Subject :Science and Tech

Section: Awareness in IT

Context:

In a surprising turn of events, Meta, the parent company of Facebook, filed a lawsuit against the U.S. Federal Trade Commission (FTC) in late November.
This unconventional move by Meta accuses the regulator of engaging in an “obvious power grab,” asserting that the FTC’s actions could cause “immediate and irreparable” harm to the social media giant.
The lawsuit revolves around the FTC’s attempt to reopen a 2020 privacy settlement with Meta, aiming to prevent the company from profiting from data collected on users under the age of 18.

Key Points:

FTC’s 2020 Privacy Settlement:

In May of the current year, the FTC accused Meta of non-compliance with the terms of a 2020 privacy settlement.
The proposed changes to the agreement included preventing Meta from monetizing data collected on individuals under the age of 18, encompassing information gathered through its virtual-reality products.

Meta’s Lawsuit Against FTC:

Meta’s legal action against the FTC is an attempt to halt the regulator from reopening the 2020 privacy settlement.
The lawsuit contends that the FTC is overstepping its authority and engaging in an unconstitutional power grab.

Supreme Court’s Influence:

The filing of Meta’s complaint follows a notable development in the U.S. Supreme Court. The conservative majority in the Supreme Court indicated openness to challenges against the Securities and Exchange Commission’s (SEC) approach to fighting fraud.
The suggestion from the court’s majority implied that individuals accused of fraud by the SEC should have the right to have their cases decided by a federal court jury, mirroring elements of Meta’s lawsuit against the FTC.

Senator Markey’s Critique:

U.S. Senator Edward Markey, known for his criticism of Meta and other Big Tech companies, dismissed Meta’s lawsuit as a “weak attempt to avoid accountability.”
Markey characterized Meta’s adoption of “extreme, right-wing legal theories” as a desperate move in the face of potential significant fines.