Insiders told Reuters that Meta is trying to settle with European Union antitrust investigators to ward off paying damages for the infringement of user data security and data law breaches.
The EU has strict laws in place to prevent social media networks from using users’ confidential information for their own advantage.
Meta recently reached out to European Union antitrust regulators in an attempt to settle ongoing investigations into the use of consumer data and pairing of Facebook ads to its social media platform, Reuters reported based on insider sources.
These discussions, however, did not come to a constructive decision. Meta and the European Commission declined requests for comment.
“I am not surprised that there is no traction”, said Tobias Caspary, a partner at London-based Fried Frank. “You can better assess the exposure risk if you see something in writing like a statement of objections.”
EU quizzes Meta on consumer data security
In June last year, the EU competition enforcer began investigating Facebook to assess its consumer data security. They focused on whether Facebook illegally used advertisers’ data to dominate the online classified ads sector.
Moreover, a second investigation is assessing whether Facebook gains an edge over rival online classified ad services by tying the classified ads service Marketplace to its social media platform.
Last month, sources familiar with the matter told Reuters that the Commission is readying charges against the company. By settling ahead of the case, Meta could avoid fines of up to 10 percent of its total global revenue.