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America January 9, 2024 3 mins read

Facebook Users To Certify £2.3B Data Claim

America ı By Rihem Akkouche

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Facebook Users To Certify £2.3B Data Claim

In a dramatic turn of events at the U.K.'s antitrust court, legal luminary Liza Lovdahl Gormsen passionately pressed for the establishment of a groundbreaking collective actions regime. This appeal took center stage during a pivotal hearing determining the fate of a £2.3 billion ($2.9 billion) class action against Meta, leaving 44 million British consumers hanging on the edge of anticipation.

Facebook Users To Certify £2.3B Data Claim: Meta Faces Allegations of Unfair Practices

Gormsen, a lawyer and legal scholar, is making a second attempt at convincing the Competition Appeal Tribunal to certify a claim against Meta. The allegations suggest that Meta, leveraging its market dominance, engaged in the unfair imposition of trading terms and prices on its users.

In a compelling argument, Robert O'Donoghue KC of Brick Court Chambers, representing Gormsen, stressed that the heart of the matter lies in a "monopoly firm using and misusing data belonging to those who otherwise interact with the platform." He underlined the global significance of addressing this issue in the realm of competition law enforcement.

Data-Driven Quandary: A Warning Against Economic Exclusion

O'Donoghue didn't mince words when cautioning that failure to adapt to "data-driven developments" could render sections of the economy "off limits" to competition law. The collective actions regime, he asserted, holds paramount importance for users with virtually no chance of standing against behemoths like Meta, one of the world's largest and most profitable companies.

"The prospect of an individual consumer litigating for £50 or £100 against Meta is, frankly, for the birds," O'Donoghue emphasized.

Facebook Users To Certify £2.3B Data Claim: Tribunal's Cautionary Pause

The tribunal had temporarily halted the proposed collective proceeding in February, citing concerns with the expert methodology explaining consumer compensation in the event of a successful trial. Gormsen was granted six months to restructure the opt-out claim.

Claimants' Allegations: A Financial Blow to Facebook Users

The heart of the claim revolves around Facebook's alleged practice of exchanging access to its network for control over users' personal data. Claimants argue that Meta exploited this data, reaping excessive profits while users received no compensation for the information used by advertisers.

Facebook Users To Certify £2.3B Data Claim: Meta Challenges Counterfactual Scenario

Lawyers for Meta, represented by Tony Singla KC of Brick Court Chambers, contested the claimants' counterfactual scenario for assessing losses. Singla argued that the class representative's method lacks grounding in facts and questioned the feasibility of Facebook paying users.

The User Uprising: Automatic Inclusion and Opt-Out Dilemma

If the case is certified, all Facebook users in Britain between 2015 and 2019 will be automatically included in the claimants' group, unless they explicitly opt out. The decision lies in the hands of Judge Marcus Smith and tribunal members Derek Ridyard and Timothy Sawyer.

In this legal battleground, Gormsen is backed by a formidable legal team, while Meta defends its position with a lineup of seasoned representatives. The stakes are high, and the outcome could set a precedent for the legal treatment of data claims against tech giants.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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