You are here: Home - Household Bills - News -

Does Facebook owe you £50 compensation?

Written by: Emma Lunn
Facebook’s owner Meta faces a £2.3bn class action over the company’s historic data collection practices.

Competition law expert Dr Liza Lovdahl Gormsen has launched the class action lawsuit at the Competition Appeal Tribunal. The claim accuses the technology giant of abusing its market dominance, and is seeking a minimum of £2.3bn in damages – worth about £50 to each of 44 million Facebook users in the UK who used the site in the claim period of October 2015 to December 2019.

The lawsuit claims the social networking site used its market dominance to impose “unfair terms and conditions” on its users,  allowing it to generate billions in revenue from their data. 

Lawyers working on the case say that by exploiting users’ data, both within the Facebook platform and off-platform through mechanisms like the Facebook Pixel, the company was able to build very detailed pictures of users’ internet usage. By using “deep data profiles” of its users, the company generated excessive profits.

In the UK, competition laws exist to prevent corporations in positions of market dominance from abusing their power through exploitation of their customers.

The case will argue that Facebook set an “unfair price’” for its UK users. The “price” set for gaining access to the social network was the surrender of UK users’ highly valuable personal data on a take it or leave it basis for using the social media site.

In return, users only received “free” access to Facebook’s social network, and zero monetary recompense whilst Facebook generated billions in revenues from its users’ data. Lawyers say this “unfair deal” was only possible due to Facebook’s market dominance.

Dr Lovdahl Gormsen 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 Gormsen’s lawyers, Quinn Emanuel Urquhart & Sullivan, LLP, have written to Meta to notify it of the claim. This landmark class action, brought under the Competition Act, will be the first of its kind against Meta in the UK. 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week

Privacy Preference Center