Court rules Meta cannot delay FTC's privacy probe despite legal challenge

Court ruling: A US court has ruled that Meta Platforms cannot postpone the Federal Trade Commission's (FTC) reopening of an investigation into alleged privacy violations by its Facebook unit while Meta pursues a lawsuit contesting the agency's authority. 

The decision, issued by the Washington, DC-based US Court of Appeals for the DC Circuit on Friday, found that Meta had failed to demonstrate a likelihood of success in its challenge. 

The court stressed that Meta had not met the stringent criteria necessary to justify an injunction pending appeal.

The ruling follows a separate decision by the same appeals court panel on March 12, which denied Meta's request to halt the FTC's probe despite Meta's objections, citing its previous settlement and payment of a $5 billion fine. 

The FTC seeks to enhance a 2020 privacy settlement with Facebook, aiming to prohibit the exploitation of minors' data and extend restrictions on facial recognition technology. 

The agency has accused Meta of deceiving parents regarding safeguards for children.

Meta, refuting claims of misleading parents, initiated a lawsuit against the FTC in November, challenging the agency's constitutional authority to act as both an investigative and adjudicative entity. 

Meta argued, among other things, that allowing the FTC's actions to proceed would infringe upon its right to a trial by jury. 

Neither Meta nor the FTC immediately provided comments regarding the court's decision.

The recent order from the D.C. Circuit addressed Meta's appeal of a March 15 ruling by US District Judge Randolph Moss, who declined to halt the FTC's probe, stressing Meta's failure to override the FTC's public interest in scrutinising its privacy measures. 

Separately, the FTC has filed an antitrust lawsuit against Meta in Washington, alleging abuse of market power in social media to suppress or acquire competitors. 

Meta has denied these allegations, which could potentially result in divestiture of its Instagram and WhatsApp platforms.

(With Reuters Inputs)