Meta Platforms Inc (NASDAQ:FB), the parent company of Facebook and Instagram, has filed a lawsuit against the US Federal Trade Commission (FTC), alleging that the FTC's in-house trials violate the US Constitution.
In legal action initiated in a Washington federal court, Meta lawyers requested an immediate halt to the FTC's efforts to amend a 2020 privacy settlement.
The dispute centres around the 2020 agreement, in which Meta consented to pay a $5 billion fine — the largest ever for a privacy violation.
Meta was also required to implement changes to its internal privacy controls. However, the FTC, in May, accused Meta of persistent breaches of its privacy commitments, prompting the regulatory body to start an internal proceeding to revise the 2020 settlement.
US District Judge Timothy Kelly recently ruled that the FTC could proceed with its plan to revise the settlement, stating that the federal court lacked jurisdiction over the agreement.
Following this, Meta filed a new lawsuit, asserting that the FTC's role as both prosecutor and judge in administrative proceedings violates due process.
Meta’s spokesperson, Christopher Sgro, expressed concerns over the FTC's actions, stating: "The FTC’s unilateral attempt to rewrite our privacy settlement agreement raises serious and important issues… The FTC shouldn’t be the prosecutor, judge, and jury in the same case.”
Additionally, Meta has appealed Judge Kelly's decision and requested that the FTC pause its internal proceeding while the appeal is ongoing.
The case, titled Meta Platforms Inc (NASDAQ:FB). v. The Federal Trade Commission, is being heard in the US District Court for the District of Columbia.