👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

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

Published 20/02/2023, 16:22
© Reuters. FILE PHOTO: Facebook app logo is seen in this illustration taken, August 22, 2022. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo/File Photo
META
-
M1TA34
-

By Sam Tobin

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 (NASDAQ:META) 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".

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

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.