Meta Platforms, the parent company of Facebook, has secured a legal victory after a federal judge in San Francisco dismissed a lawsuit accusing the tech giant of misleading users about its privacy practices to maintain dominance in the social media market. According to Reuters, U.S. District Judge James Donato granted summary judgment in Meta’s favor on Monday, halting a trial that had been scheduled for November.
The ruling came after the court barred a key expert witness for the plaintiffs, effectively leaving them unable to demonstrate harm. The lawsuit had been brought by three Facebook users who claimed that Meta misrepresented its data protection policies to suppress competition. Per Reuters, the plaintiffs argued that users should be compensated for handing over personal data to use the platform and had even planned to call CEO Mark Zuckerberg to testify.
In its defense, Meta denied the allegations, telling the court that it competes fairly with rivals such as YouTube and TikTok. The company welcomed the decision, stating that the outcome “confirms what we have known from the beginning — the plaintiffs’ claims are without merit.”
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Earlier this year, Judge Donato had already curtailed the case by rejecting attempts to certify it as a class action, reducing the scope considerably. The court also declined to accept expert findings that suggested Meta might have paid users around $5 a month for their data in a competitive environment. The plaintiffs had sought both a judicial order to restore competition in the social networking market and damages of about $240 each.
Despite this win, Meta continues to face legal challenges. A separate antitrust lawsuit filed by advertisers, who claim they paid inflated rates for advertising on Facebook, is still pending before Judge Donato, who has yet to decide whether that case can proceed as a class action, according to Reuters.
The case is formally titled Maximilian Klein et al v. Meta Platforms, U.S. District Court, Northern District of California, No. 3:20-cv-08570-JD. Representation for the plaintiffs included Shana Scarlett of Hagens Berman Sobol Shapiro and Kevin Teruya of Quinn Emanuel Urquhart & Sullivan. Meta was represented by Sonal Mehta, David Gringer, and Ari Holtzblatt of Wilmer Cutler Pickering Hale and Dorr.
Source: Reuters
