Meta Platforms Inc., the parent company of Facebook and Instagram, has agreed to a substantial settlement of $18 billion in a class-action lawsuit concerning data privacy. The lawsuit, filed on behalf of users, alleged that Meta unlawfully harvested personal data and shared it with third parties without explicit consent, violating privacy laws.
This settlement marks one of the largest privacy-related payouts in U.S. history. While the full details of the agreement are still emerging, the case has cast a spotlight on the extensive data collection practices of major technology companies and the regulatory scrutiny they face.
The legal battle centered on claims that Meta violated users' privacy by tracking their online activity, even when they were not using Meta's platforms, and using that data for targeted advertising. Plaintiffs argued that this practice constituted a breach of privacy and potentially violated various state and federal laws.
Meta has not admitted any wrongdoing as part of the settlement. The company stated that the agreement aims to resolve the lawsuit and allow the company to move forward. The settlement still requires court approval before it can be finalized.
This development comes at a time when technology companies are under increasing pressure from regulators and the public to be more transparent about their data handling practices. Lawmakers on Capitol Hill have been actively debating and proposing new legislation aimed at strengthening data privacy protections for consumers nationwide.