Meta’s Facebook faced a setback in its ongoing privacy battle with the U.S. Federal Trade Commission (FTC) as a federal judge ruled on Monday that the regulator has the authority to seek a reduction in the revenue generated by the social media giant from users under the age of 18.
Judge Timothy Kelly of the U.S. District Court for the District of Columbia rejected Meta’s request for the court to take control of the dispute and ordered a review of the previous agreement between Facebook and the FTC.
The FTC contends that it has the right to determine modifications to its settlements and that the district court lacks jurisdiction in this matter. Any decision by the commission can be appealed to the relevant appeals court.
The proposed changes by the FTC involve amending a 2019 settlement that required Facebook to pay $5 billion. The updated terms would prohibit Facebook from profiting from data collected on users under 18, extending the restrictions to its virtual reality business. Additionally, the social media giant would face increased limitations on the use of facial recognition technology.
Facebook has not yet provided a response to the latest court ruling.