# Facebook faces $3.2 billion UK class action over market dominance
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-14
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Meta Platforms faces £2.3bn class action over data abuse
Meta Description: Facebook, now known as Meta Platforms, accused of exploiting personal data in UK lawsuit worth billions. Read more about the case here.
URL: https://financedigest.com/facebook-faces-3-2-billion-uk-class-action-over-market-dominancehtml

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By Kirstin Ridley

LONDON (Reuters) – Social media giant Facebook, now known as Meta Platforms, faces a 2.3 billion pound plus ($3.2 billion plus) class action in Britain over allegations it abused its market dominance by exploiting the personal data of 44 million users.

Liza Lovdahl Gormsen, a senior adviser to Britain’s Financial Conduct Authority (FCA) watchdog and a competition law academic, said she was bringing the case on behalf of people in Britain who had used Facebook between 2015 and 2019.

The lawsuit, which will be heard by London’s Competition Appeal Tribubal, alleges Facebook made billions of [pounds by imposing unfair terms and conditions that demanded consumers surrender valuable personal data](https://www.financedigest.com/dollar-slips-after-upbeat-china-data-euro-pound-rise.html "Dollar slips after upbeat China data; euro, pound rise") to access the network.

Quinn Emanuel Urquhart & Sullivan, the [law firm](https://www.financedigest.com/how-marketing-helps-law-firms-grow.html "How Marketing Helps Law Firms Grow") representing Lovdahl Gormsen, has notified Facebook of the claim.

[Facebook said people used its services](https://www.financedigest.com/30-per-cent-of-uk-consumers-would-use-amazon-google-facebook-or-apple-for-banking-services.html "30 Per Cent of UK Consumers Would Use Amazon, Google, Facebook or Apple for Banking Services") because it delivered value for them and “they have meaningful control of what information they share on Meta’s platforms and who with.

The [case comes days](https://www.financedigest.com/shanghai-finds-cases-after-five-days-of-zero-covid-but-end-of-lockdown-on-track.html "Shanghai finds cases after five days of ‘zero COVID’ but end of lockdown on track") after Facebook lost an attempt to strike out an antitrust lawsuit by the Federal Trade Commission (FTC), one of the biggest challenges by the U.S. government against a tech company in decades as Washington [attempts to tackle Big Tech’s extensive market](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") power.

In the 17 years since it was created, Facebook became the sole [social network](https://www.financedigest.com/fc-barcelona-legends-iniesta-puyol-and-de-la-pena-together-with-leading-technologists-announce-blockchain-powered-social-network-to-empower-sports-fans.html "FC Barcelona Legends Iniesta, Puyol, and de la Peña Together with Leading Technologists Announce Blockchain-Powered Social Network to Empower Sports Fans") in the UK where you could be sure to connect with friends and family in one place,” Lovdahl Gornsen said.

Yet, there was a dark side to Facebook; it abused its market dominance to impose unfair terms and conditions on ordinary Britons, [giving it the power](https://www.financedigest.com/giving-women-the-power-to-make-money-and-take-control-of-their-destiny.html "Giving women the power to make money and take control of their destiny") to exploit their personal data.

Lovdahl Gormsen alleges Facebook collected [data within its platform](https://www.financedigest.com/blockchain-backed-data-platform-streamr-joins-the-bancor-network-for-decentralized-liquidity.html "Blockchain-backed Data Platform, Streamr Joins the Bancor Network for Decentralized Liquidity") and through mechanisms like the Facebook Pixel, allowing it to build an “all-seeing picture” of Internet usage and generate valuable, deep data profiles of users.

Opt-out class actions, like Lovdahl Gormsen’s, bind a defined group automatically into a lawsuit unless individuals opt out.

($1 = 0.7277 pounds)

(Reporting by Kirstin Ridley; Editing by Mark Potter)


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