The case will be the first of its kind against the company, which changed its name from Facebook to Meta last year, in the UK and argues that it has breached the 1998 Competition Act. According to the claim the company used its market dominance to impose unfair terms and conditions on Britons enabling it to exploit their personal data. Dr Liza Lovdahl Gormsen, director of the Competition Law Forum, who is bringing the case said: “In a free and fair market, competition should lead to lower prices and increased quality. But the bigger a company is in the market, the less choice we have, no matter what else they’re doing. Facebook has exploited its dominance at its users’ cost.”
Dr Lovdahl Gormsen’s case argues that Facebook has set an “unfair price” for its UK users with the price for access to the network being surrendering personal data on a “take it or leave it basis.”
It is alleged by collecting users data from the platform Meta was able to build highly detailed pictures of users’ internet usage and was able to use these data profiles to generate “excessive profits.”
Facebook is free to use with Meta generating around 98 percent of its income coming from advertisers who benefit from the ability to target specific groups of consumers.
A Meta spokesperson said: “People access our service for free.
News of the class action is the second legal blow to Meta this week after a federal judge in the US ruled a lawsuit aimed at breaking up the company could go ahead.
Judge James Boasberg ruled a case brought by US competition watchdog the Federal Trade Commission could continue after requests from Meta to dismiss it.
The FTC is aiming to force Meta to sell Instagram and WhatsApp after accusing the company of abusing its power and squashing competition.