Facebook Parent Meta Dealt Legal Blow As Judge Rejects Appeal In FTC Privacy Dispute
Portfolio Pulse from Ananya Gairola
Meta Platforms Inc. (NASDAQ:META) has lost an appeal in a privacy dispute with the U.S. Federal Trade Commission (FTC). The U.S. District Court for the District of Columbia rejected Meta's request to intervene in the case concerning the Messenger Kids app. The FTC had previously charged Meta with deceiving parents about their children's communication options on the app and suggested revising a 2019 settlement that included a $5 billion payment by Facebook. Meta, which relies heavily on digital ads for revenue, called the FTC's charges baseless and is considering further legal actions. This legal issue adds to ongoing concerns about harmful content on Meta's platforms, including hate speech and misinformation, as well as safety measures for teenagers on Instagram.

November 28, 2023 | 2:21 am
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Meta Platforms Inc. faces a legal defeat as its appeal in a privacy dispute with the FTC is dismissed. The company is considering further legal actions amidst ongoing allegations of harmful content management and safety issues on its platforms.
The legal defeat could potentially lead to increased regulatory scrutiny and possible financial penalties for Meta, which may negatively impact investor sentiment and the stock price in the short term. The news also compounds existing concerns about content management and safety on Meta's platforms, which could further erode public trust and potentially affect user engagement and ad revenue.
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