Facebook faces $3.2 billion class action suit in the UK for market dominance
Liza Lovdahl Gormsen, a senior adviser to Britain's Financial Conduct Authority (FCA) watchdog and a competition law scholar, said she would bring the case on behalf of people in Britain who had used Facebook between 2015 and 2019
Social media giant Facebook, now known as Meta Platforms, is facing a more than 2.3 billion pound (over $3.2 billion) class action lawsuit in Britain over allegations that it abused its market dominance by exploiting the personal data of 44 million users.
Liza Lovdahl Gormsen, a senior adviser to Britain's Financial Conduct Authority (FCA) watchdog and a competition law scholar, said she would bring the case on behalf of people in Britain who had used Facebook between 2015 and 2019.
The suit, which will be heard by the Competition Appeals Tribunal in London, alleges that Facebook made billions of pounds by imposing unfair terms and conditions that required consumers to hand over valuable personal data to access the network.
Quinn Emanuel Urquhart & Sullivan, the law firm representing Lovdahl Gormsen, notified Facebook of the claim.
Facebook said people used its services because it provided value and "they have significant control over what information they share on Meta platforms and with whom."
The case comes days after Facebook lost an attempt to nullify an antitrust lawsuit from the Federal Trade Commission (FTC), one of the US government's biggest challenges against a technology company in decades, while Washington tries to address the broad market power of Big Tech.
"In the 17 years since it was created, Facebook became the only social network in the UK where you could be sure to connect with friends and family in one place," said Lovdahl Gornsen.
"However, there was a dark side to Facebook; it abused its market dominance to impose unfair terms and conditions on ordinary Britons, giving them the power to exploit their personal data."
Lovdahl Gormsen alleges that Facebook collected data within its platform and through mechanisms such as the Facebook Pixel, which allowed it to create an "all-seeing picture" of internet usage and generate deep and valuable data profiles of users.
Opt-out class actions, such as Lovdahl Gormsen, automatically bind a defined group to a lawsuit unless individuals opt out.
Source: Money Control