Meta Platforms (NASDAQ:META) has urged a federal court to block the U.S. Federal Trade Commission’s (FTC) efforts to revise a 2020 privacy settlement and impose new sanctions. Meta’s struggle against the sanctions includes urging the U.S. District Court for Washington, D.C., to stop a legal proceeding that the FTC launched earlier this month, accusing the company of repeatedly violating the original settlement.
FTC Actions against Meta
The FTC said that it intends to add new prohibitions to the settlement, including a ban on using facial recognition tools and monetizing the data collected from young users. The FTC ordered Meta to respond by August 3. Meta contends that the FTC can’t unilaterally modify the original settlement. Under the 2020 settlement, the company agreed to a $5 billion penalty and changes to internal privacy checks.
The settlement included a consent order approved by the district court. Meta spokesperson Dina El-Kassaby Luce said in a statement, “The consent order is clear that only the federal court, not the FTC, can enforce or modify it, and the FTC is bound to comply with its terms.” Luce also said that the company takes its compliance with the original order seriously and has made huge investments to establish a comprehensive privacy program.
As per Bloomberg, in a filing seeking an injunction to stop the FTC’s proceeding, Meta argued that the agency is attempting to substitute the court by taking further enforcement action and modifying the settlement.
Despite regulatory and macro headwinds, Meta impressed investors by reporting an unexpected increase in its first-quarter revenue despite continued pressure on digital ad spending.
What is the Target Price for Meta Stock?
Wall Street’s Strong Buy consensus rating on Meta stock is based on 39 Buys, four Holds, and two Sells. Despite Meta’s problems, two more analysts, from UBS and RBC Capital, have reiterated Buy ratings in the past week alone.
The average price target of $284.19 implies 7.4% upside. Shares have jumped 120% year-to-date.
