In a landmark decision, the Australian Government has ordered Meta Platforms Inc (NASDAQ:FB)., the parent company of Facebook (NASDAQ:META), to cough up $20 million for privacy infringements through its VPN app, Onavo.
The case was brought forth by the Australian Competition and Consumer Commission (ACCC), who accused Meta Platforms and its subsidiaries, Facebook Israel and the now-defunct app, Onavo, of marketing the app as a privacy protection tool without adequately disclosing its questionable data collection methods.
In her written judgment, Judge Wendy Abraham shed light on Onavo's practices, stating: "While Onavo Protect was advertised and promoted as protecting users' personal information and keeping their data safe, in fact, Facebook Israel and Onavo used the app to collect an extensive variety of data about users' mobile device usage.
"An anonymised and aggregated form of that data was provided to their parent company, Meta Platforms Inc (NASDAQ:FB) (Meta), and used by Meta for a range of commercial purposes."
Aside from the hefty penalty, The Federal Court of Australia also ordered Meta to repay $400,000 in legal costs to the ACCC.
The Federal Court has ordered Facebook Israel and Onavo to each pay $10m for engaging in conduct liable to mislead in promotions for the Onavo Protect app, by failing to adequately disclose that users’ data would be used for Meta’s commercial purposes. https://t.co/0t4DcAUcwO pic.twitter.com/XgZ2gE3PiX— ACCC (@acccgovau) July 26, 2023
Legal trouble not over
The penalty concludes one chapter of Meta's ongoing legal challenges in Australia, stemming from its handling of user data.
This legal wrangling was born out of the controversy surrounding Meta's association with data analytics firm Cambridge Analytica during the 2016 United States presidential election.
However, Meta's legal troubles aren't over.
The company faces another civil court action from Australia’s Office of the Information Commissioner concerning its dealings with Cambridge Analytica, specifically in Australia.
In response to the ruling, Meta has reportedly emphasised its commitment to transparency and user privacy, stating that the ACCC recognised its lack of intent to mislead users.
The tech giant also pointed to its proactive efforts to create tools that offer users increased control over their data usage.