Facebook Asks UK Tribunal to Block $3.7 Billion Mass Action Lawsuit Over Market Dominance

The lawsuit claims users should get compensation for the economic value they would have received if Facebook was not in a dominant market position.

Advertisement
By Reuters | Updated: 31 January 2023 13:04 IST
Highlights
  • Meta’s data practices are said to violate prohibition on dominant firms
  • Meta said the lawsuit was entirely without merit
  • Its facing a mass action on behalf of around 45 million users in Britain

Meta's lawyers said the claimed losses ignore the “economic value” Facebook provides

Photo Credit: Reuters

Facebook on Monday asked a London tribunal to block a collective lawsuit valued at up to GBP 3 billion (roughly Rs. 30,300 crore) over allegations the social media giant abused its dominant position to monetise users' personal data.

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

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

Advertisement

Her lawyers said users should get compensation for the economic value they would have received if Facebook was not in a dominant position in the market for social networks.

Advertisement

But Meta said the lawsuit was “entirely without merit” and should not be allowed to proceed. Its lawyers said the claimed losses ignore the “economic value” Facebook provides.

Lovdahl Gormsen's lawyers on Monday 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.

Advertisement

A decision to certify collective proceedings will depend on whether the tribunal decides that the individual cases can appropriately be dealt with together, rather than on their merits.

Ronit Kreisberger, representing Lovdahl Gormsen, told the tribunal that “Meta's data practices violate the prohibition on abusive conduct by dominant firms”.

Advertisement

“There is unquestionably a case for Meta to answer at trial,” Kreisberger argued.

But lawyers representing Meta said the lawsuit wrongly assumes that any “excess profits” it might make equates to a financial loss suffered by individual Facebook users.

This approach “takes no account whatsoever of the significant economic value of the service provided by Facebook”, Marie Demetriou said in court documents.

She said Lovdahl Gormsen's estimate of potential claimants' total losses – GBP 3 billion, including interest – is “at the very least wildly inflated”.

© Thomson Reuters 2023


The Infinix Zero Ultra has a decent set of specifications on paper, but does the phone justify its high asking price? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Facebook, Meta
Advertisement

Related Stories

Popular Mobile Brands
  1. Apple is Expected to Launch These Products Next Year
  2. Arc Raiders Is a Hit on Steam With Over 300,000 Concurrent Players
  3. Dude OTT Release Date: When and Where to Watch it Online?
  4. Red Magic 11 Pro Launched in Global Markets With Slightly Smaller Battery
  1. Ghostly Neutrinos May Hold the Answer to Why Matter Exists in Our Universe
  2. German Scientists Develop Laser Drill to Explore Icy Moons’ Hidden Oceans
  3. Japan’s Akatsuki Spacecraft Declared Inoperable, Marking End of Dedicated Venus Missions
  4. NASA’s JWST Produces First-Ever 3D Map of Distant Planet WASP-18b
  5. Bad Girl OTT Release Date Revealed: Know When and Where to Watch This Tamil Movie Online
  6. Dhoolpet Police Station OTT Release: Know When and Where to Watch This Upcoming Crime Series Online
  7. Rockstar Games Co-Founder Says GTA Games Won't Work if Set Outside the US
  8. Iran Tackles Unauthorised Crypto Mining After 95 Percent of Bitcoin Mining Devices Found Operating Illegally
  9. Red Magic 11 Pro Launched Globally With Snapdragon Elite Gen 5, Slightly Smaller Battery: Price, Specifications
  10. Microsoft AI Chief Mustafa Suleyman Calls the Idea of Conscious AI ‘Absurd’: Report
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.