Meta

Supreme Court clears path for lawsuit against Meta

The US Supreme Court has decided to allow a class-action lawsuit against Meta, Facebook’s parent company, to move forward. The case stems from the Cambridge Analytica scandal, where the political consulting firm accessed personal data from 87M Facebook users and used it for voter targeting in the 2016 US presidential election. Meta had sought to block the lawsuit, but the court dismissed its appeal.

Investors claim Meta failed to fully disclose the risks of data misuse, leading to two major drops in its stock price in 2018 when the extent of the privacy breach became public. Meta has already paid a $5.1B fine and a $725M settlement with users over related allegations.

The lawsuit is one of several legal challenges facing big tech firms. A separate case against Nvidia is under review, as investors allege the company misled them about its dependency on cryptocurrency mining.

Meta updates Messenger with new features

Meta is enhancing its Messenger app with a range of new features, including HD video calls, voice isolation, and AI-powered backgrounds. HD calls are now the default for Wi-Fi users and can also be enabled for cellular calls. Voice isolation reduces background noise during calls, improving clarity.

The app also introduces video and audio voice messages, allowing users to leave recordings when their contacts are unavailable. iOS users gain the ability to send messages and make calls through Siri, offering hands-free convenience.

Another highlight is the AI-generated backgrounds for video calls. Users can select this feature via the “effects” icon during calls, adding a creative, customisable touch to their conversations. These updates follow recent improvements, such as end-to-end encryption by default and the addition of a Meta AI chatbot in Messenger. Meta continues to evolve Messenger into a versatile communication platform, blending functionality with cutting-edge technology to enhance the user experience.

Meta launches new AI division for businesses

Meta has hired Clara Shih, previously Salesforce’s CEO of AI, to lead its newly formed Business AI group. Shih announced her move in a LinkedIn post, stating that her team aims to develop cutting-edge AI tools to help businesses on Meta platforms like Instagram, Facebook, and WhatsApp. The initiative seeks to empower businesses by making AI accessible and effective in driving growth.

The Business AI group will focus on leveraging Meta’s Llama language models to offer solutions for advertising and content creation. While specific tools have not been revealed, AI-generated ad creation is a likely feature. Meta’s strategy hinges on enhancing its platforms with AI tools, boosting ad engagement, and increasing revenue without directly charging for AI products.

Shih’s appointment comes amid intensified competition in enterprise AI. Salesforce, where Shih previously worked, has struggled to fully capitalise on the AI boom. Shih now has an opportunity to steer Meta’s efforts in reshaping how businesses interact with AI, marking a significant shift for the company’s focus on business-oriented innovations.

German court rules Facebook users can seek compensation for data breach

Germany‘s Federal Court of Justice (BGH) has ruled that Facebook users affected by data breaches in 2018 and 2019 are entitled to compensation, even without proving financial losses. The court determined that the loss of control over personal data is sufficient grounds for damages, marking a significant step in data protection law.

The case stems from a 2021 breach involving Facebook’s friend search feature, where third parties accessed user accounts by exploiting phone number guesses. Lower courts in Cologne previously dismissed compensation claims, but the BGH ordered a re-examination, suggesting around €100 in damages could be awarded per user without proof of financial harm.

Meta, Facebook’s parent company, has resisted compensation, arguing that users did not suffer concrete damages. A spokesperson for Meta described the ruling as inconsistent with recent European Court of Justice decisions and noted that similar claims have been dismissed by German courts in thousands of cases. The breach reportedly impacted around six million users in Germany.

The court also instructed a review of Facebook’s terms of use, questioning whether they were transparent and whether user consent for data handling was voluntary. The decision adds pressure on companies to strengthen data protection measures and could set a precedent for future claims across Europe.

Meta responds to antitrust fine over WhatsApp data

Meta Platforms is challenging a decision by India’s Competition Commission (CCI) over WhatsApp’s data-sharing practices. The regulator imposed a $25.4 million fine and restricted data-sharing between WhatsApp and other Meta-owned applications for five years, citing antitrust violations linked to the 2021 privacy policy.

The investigation began in March 2021 after WhatsApp introduced a controversial privacy policy enabling data transfers within Meta’s ecosystem. The CCI ruled that WhatsApp must not condition access to its services on user agreement to share personal data for advertising purposes.

Meta maintains the privacy policy does not affect the confidentiality of personal messages. A spokesperson emphasised no user accounts were deleted or had functionality reduced due to the update, underscoring its commitment to user privacy.

The company plans to legally challenge the CCI’s decision, reiterating its stance that the policy complies with privacy standards. The dispute highlights the growing scrutiny of global tech companies’ practices in India, one of the largest digital markets.

Meta brings AI to Ray-Ban glasses in Europe

Meta has started rolling out AI capabilities for its Ray-Ban Meta AR glasses in France, Italy, and Spain. Users in these countries can now access Meta AI, the company’s voice-activated assistant, which supports French, Italian, and Spanish alongside English.

The rollout follows months of efforts to align the glasses with Europe’s regulatory requirements. Meta expressed excitement about bringing its innovative features to the region and plans further expansion. However, certain features available in other regions, such as multimodal capabilities using the glasses’ cameras, remain unavailable in Europe for now.

Meta has faced challenges complying with Europe’s AI regulations, including the EU’s AI Act and GDPR privacy laws. These rules govern AI training practices, particularly regarding data sourced from Instagram and Facebook users. Earlier this year, EU regulators temporarily restricted Meta from training AI models on European user data.

After making adjustments to its opt-out processes, Meta resumed training on UK data and introduced AI features in several countries. The company has yet to disclose broader compliance measures for the rest of the EU, though it remains committed to addressing regulatory feedback.

Major players revolutionising AI adoption

AI is becoming a central feature in widely used technologies, with major firms embedding AI into familiar products. Meta’s AI chatbot now enhances platforms like Facebook and Instagram, while Apple’s new Apple Intelligence introduces advanced features for iPhones. Google has unveiled AI-powered search summaries and its chatbot Gemini, while Amazon is upgrading Alexa with enhanced AI capabilities. These efforts aim to seamlessly incorporate AI into daily life.

Experts view familiar platforms as key to driving consumer adoption of AI. Generative AI tools such as ChatGPT have introduced many to the technology, building awareness and readiness. Analysts predict that existing devices like smartphones will play a pivotal role in what is being called the ‘consumer AI revolution.’ Apple’s reach alone could soon enable 20% of the global population to access AI-driven features.

The road to widespread integration is not without obstacles. Apple’s AI features have faced criticism over delays, and Amazon’s AI-enhanced Alexa faces strong competition from Google Nest. However, investment in AI infrastructure remains robust, with companies aiming to transform industries, including smart homes and financial services, through more intelligent systems.

As AI becomes embedded in everyday technology, future innovations promise deeper integration and enhanced user experiences. Anticipated advancements include more intuitive interactions and a shift in how people engage with technology, potentially reshaping daily routines and consumer expectations.

Meta defends Instagram, WhatsApp acquisitions in high-stakes antitrust trial

A US judge has ruled that Meta Platforms, the parent company of Facebook, must face trial in an antitrust lawsuit filed by the Federal Trade Commission (FTC). The lawsuit, initiated during the Trump administration, alleges that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were intended to stifle emerging competition and maintain a social media monopoly. Meta has countered the FTC’s claims, arguing that the regulators ignore substantial competition from platforms like TikTok, YouTube, and LinkedIn.

This case is part of a broader crackdown on Big Tech by United States regulators. The FTC and the Department of Justice are pursuing major antitrust lawsuits against several technology giants, including Amazon and Apple. Alphabet’s Google also faces two significant legal challenges, with one case already finding that the company unlawfully restricted competition among search engines. These lawsuits reflect intensified regulatory efforts to address concerns over the market power of leading technology firms.

Meta’s legal battle could set a significant precedent for how tech conglomerates operate and acquire competitors. Critics argue that Meta’s dominance has harmed innovation and user choice, while the company insists it faces robust competition across the digital landscape. As Meta prepares for trial, the outcome could have far-reaching implications for the tech industry and future regulatory actions against monopolistic practices.

Meta prepares to launch ads on Threads app in early 2024

Meta Platforms is gearing up to introduce advertising to its Threads app early next year, aiming to tap into a new revenue stream while competing with X (formerly Twitter). The Information reported that a limited number of advertisers will be allowed to publish ads on Threads starting in January, with the initiative spearheaded by Instagram’s advertising team. Threads, which launched in July 2023 amidst the upheaval at X under Elon Musk’s ownership, has rapidly grown to 275 million monthly active users, as announced by CEO Mark Zuckerberg in October.

Despite the app’s quick expansion, Meta remains cautious about its immediate profitability. CFO Susan Li, during a recent post-earnings call, indicated that Threads is not expected to be a significant revenue driver by 2025. She emphasised that the company is prioritising consumer value, and monetisation features are not yet a primary focus. A Meta spokesperson echoed this sentiment, confirming that Threads currently has no ads or monetisation strategies.

The timing for the introduction of ads on Threads could be opportune, given the instability at X. Since Elon Musk‘s acquisition of X, the platform has experienced disruptions and a decline in ad revenue, as some advertisers feared their brands could appear alongside controversial or harmful content. Musk’s management style and significant policy changes prompted many brands to reconsider ad spending on the site. Notably, X has taken legal action against a global advertising alliance and some major companies, accusing them of conspiring to boycott the platform and contributing to revenue losses.

Meta‘s plans to monetise Threads come as it seeks to entice disillusioned advertisers from X. However, the company is carefully balancing the need to develop Threads as a welcoming and user-friendly environment while exploring advertising opportunities. The rollout of ads and additional features is set to shape how Threads evolves as a major social media contender in the years to come.

EU hits Meta with $800M antitrust fine

Meta, the parent company of Facebook, has been fined nearly €800M by the European Union for anti-competitive practices related to its Marketplace feature. The European Commission accused the tech giant of abusing its dominant position by tying Marketplace to Facebook’s social network, forcing exposure to the service and disadvantaging competitors.

This marks the first time the EU has penalised Meta for breaching competition laws, though the company has faced previous fines for privacy violations. The investigation found that Meta unfairly used data from competitors advertising on Facebook and Instagram to benefit its own Marketplace, giving it an edge that rivals couldn’t match.

Meta rejected the claims, arguing that the decision lacks evidence of harm to competition or consumers. While the company pledged to comply with the EU’s order to cease the conduct, it plans to appeal the ruling. The case highlights ongoing EU scrutiny of Big Tech, with Meta facing additional investigations on issues like privacy, child safety, and election integrity.