Meta✴ sued the U.S. Federal Trade Commission (FTC), alleging violations of the U.S. Constitution and asking the court to immediately halt the FTC’s efforts to renegotiate the 2020 agreement. Subject to the terms of this deal, Meta✴ agreed to pay the largest fine in history, $5 billion, and make changes to internal privacy audits. The U.S. District Court previously allowed the FTC to continue the review process, adding that it had no jurisdiction over the agreement.
In May, the FTC filed charges against Meta✴ committed a further breach of confidentiality obligations and initiated an internal process to renegotiate the 2020 agreement. In response to Meta✴ filed a lawsuit alleging that the Federal Trade Commission violated due process by acting as both prosecutor and judge in administrative proceedings.
“The Federal Trade Commission’s unilateral attempt to rewrite our privacy agreement raises serious and important issues.said a Meta representative✴ Christopher Sgro. — The FTC should not be prosecutor, judge and jury at the same time.” The FTC declined to comment.
New meta-lawsuit✴ raises thorny questions about the constitutionality of the FTC’s actions. Meta✴ is not alone in its claims against the FTC. Biotech company Illumina, which the FTC is demanding to cancel its $7 billion acquisition of cancer detection startup Grail, also argues that the agency’s internal procedures violate constitutional due process rights and are an example of government overreach represent.
Other US regulators also face constitutional problems. The U.S. Supreme Court heard arguments Wednesday in a case that could potentially result in the Securities and Exchange Commission no longer being able to seek multimillion-dollar fines from judges.