A judge has recently approved a significant legal case against Facebook’s parent company, Meta, with claims potentially reaching up to £3 billion. The lawsuit is spearheaded by Dr Liza Lovdahl Gormsen, who represents around 45 million Facebook users. Although her initial lawsuit was dismissed in 2023, a revised claim has now been accepted, with the trial set to occur no later than early 2026.
Meta has responded to the lawsuit, stating, “The claims are completely unfounded, and we intend to fight them vigorously.”
The crux of the lawsuit alleges that Facebook engaged in unfair practices with its users. The legal filings argue that Facebook exploited its market position by requiring users to provide data from non-Facebook sources, such as the Meta-owned Instagram and other external sites. This requirement effectively made data sharing with third parties mandatory for using the Facebook platform, presenting users with a “take-it-or-leave-it” ultimatum.
Despite being a free service, Facebook’s revenue model heavily relies on targeted advertising. The accumulation of extensive user data enhances the platform’s ability to tailor advertisements more effectively, increasing its advertising revenue.
The legal claim seeks compensation ranging from £2.07 billion to £3.1 billion for individuals with Facebook accounts from February 2016 to December 2023. This case is scheduled to be reviewed by the Competition Appeal Tribunal.
Meta has reiterated that the concerns raised in the tribunal’s February 2023 judgment remain unaddressed. The company is committed to giving users substantial control over their shared information. It continues to invest in tools that support this commitment.
The lawsuit is financially supported by Innsworth, an entity financed by an investment management fund known for backing large-scale legal actions, including those against Mastercard, Ericsson, and Volkswagen.
In a related event in 2023, Meta agreed to a $725 million settlement in a privacy lawsuit benefiting US Facebook account holders, marking another chapter in the company’s ongoing legal challenges.
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