Meta Vs FTC: Legal battle over Ads targeting user interests

Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has initiated legal proceedings against the Federal Trade Commission (FTC) in an effort to address concerns regarding the constitutionality of the regulatory body's structure. Meta asserts that certain components of the FTC's framework potentially infringe upon the U.S. Constitution, particularly in relation to the utilization of in-house courts and potential implications for due-process guarantees.

In the lawsuit filed in federal court in Washington, Meta expresses its concerns over the FTC's dual role as both prosecutor and judge in the proceedings, which raises constitutional concerns. The company respectfully requests an injunction to prevent the FTC from implementing the proposed restrictions initially suggested in May. These restrictions, which include a broad prohibition on monetizing the data of individuals under 18, have a significant impact on Meta's primary business of delivering targeted ads based on user interests.

The FTC, with the intention of implementing stricter regulations on Meta, had previously come to an agreement with the company in 2020. As part of this settlement, Meta willingly agreed to pay a $5 billion civil penalty in connection with a previous investigation into its privacy practices. The suggested changes by the FTC are a component of this settlement.

Meta's legal action comes in response to a recent ruling by a federal judge in Washington, who has granted permission to the FTC to move forward with its proposed limitations on Meta by making adjustments to the 2020 settlement. Although Meta had initially tried to prevent these alterations, the judge stated their inability to intervene due to a lack of authority.

This lawsuit by Meta is in accordance with a precedent established by the U.S. Supreme Court in April, Axon Enterprise v. FTC, which permits entities facing FTC administrative proceedings to raise constitutional concerns and seek redress in the U.S. District Court.

In summary, Meta Platforms is currently involved in a legal dispute with the FTC, raising concerns about the constitutionality of the regulator's structure, particularly the use of in-house courts. As the legal landscape continues to evolve, the outcome of this case is expected to have broader implications for the regulatory framework governing data privacy and usage in the digital domain.