$3.7 billion UK mass action against Facebook over market dominance rejected - for now


FILE PHOTO: Facebook app logo is seen in this illustration taken, August 22, 2022. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo/File Photo

LONDON (Reuters) -Facebook on Monday temporarily fought off a collective lawsuit valued at up to 3 billion pounds ($3.7 billion) over allegations the social media giant abused its dominant position to monetise users' personal data.

However, a London tribunal gave the proposed claimants' lawyers up to six months to "have another go" at establishing any alleged losses by users.

Meta Platforms Inc, the parent company of the Facebook group, faces a mass action brought on behalf of around 45 million Facebook users in Britain.

Legal academic Liza Lovdahl Gormsen, who is bringing the case, says Facebook users were not properly compensated for the value of personal data they had to provide to use the platform.

Her lawyers last month asked the Competition Appeal Tribunal to certify the case under the UK's collective proceedings regime – which is roughly equivalent to the class action regime in the United States.

But the Tribunal ruled on Monday that Lovdahl Gormsen's methodology of establishing any losses suffered by Facebook users needed "root-and-branch re-evaluation" for the case to continue.

Judge Marcus Smith did, however, give Lovdahl Gormsen's lawyers six months to "file additional evidence setting out a new and better blueprint leading to an effective trial".

A spokesperson for Meta said the company welcomed the decision and referred to its previous statement that the lawsuit is "entirely without merit".

A spokesperson for Lovdahl Gormsen declined to comment.

(Reporting by Sam TobinEditing by Tomasz Janowski)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Britannica didn’t just survive. It’s an AI company now
'Who's next?': Misinformation and online threats after US CEO slaying
What is (or was) 'perks culture’?
South Korean team develops ‘Iron Man’ robot that helps paraplegics walk
TikTok's rise from fun app to US security concern
Musk, president? Trump says 'not happening'
Jeff Bezos says most people should take more risks. Here’s the science that proves he’s right
Bluesky finds with growth comes growing pains – and bots
How tech created a ‘recipe for loneliness’
How data shared in the cloud is aiding snow removal

Others Also Read