A massive class action lawsuit against Meta, worth at least £2.1 billion, is proceeding in the UK after the social media giant lost its bid to have the litigation thrown out. The lawsuit, filed by Dr. Liza Lovdahl Gormsen, a competition law expert, alleges that Meta exploited UK users' personal data in an "unfair bargain" due to its market dominance in social networking.

The lawsuit, which has been nearly three years in the making, covers 46 million users of Meta services in the UK between February 14, 2016, and October 6, 2023. It claims that Meta's collection and processing of users' information for ad profit constitutes an "unfair trading condition" and imposes an unfairly high price on users. The lawsuit is seeking damages worth a minimum of $2.7 billion at current exchange rates.

The case is notable for its massive scale, with the damages sought being bigger than some of the largest data violation fines issued to date in Europe. The lawsuit is also significant because it places an actual value on personal data, which some might argue is a contentious idea. Furthermore, if successful, the case could set a precedent for how competition law might be applied by individuals in their own legal actions, as well as in other class-action style antitrust suits.

The lawsuit relates to Facebook users and how their data is collected on Meta-owned products outside of Facebook, as well as on third-party platforms. Meta can collect people's information through cookies or other tracking technologies, for example, or by way of information provided by advertisers, data brokers, or other partners it works with to target ads. Dr. Gormsen argues that these practices involve an "unfair trading condition", imposing an unfairly high price on users and their information.

Due to Facebook's market dominance, the claim is that users have no real alternative to using its social networks if they wish to opt out of its data collection. As Dr. Gormsen told TechCrunch in 2022, "I don't think people can connect to their family and friends in the same way on Twitter [now X], and Snapchat and all these other places. Facebook is quite unique in the way they're doing it."

The amount of data that gets collected on users has been at the center of some of the most critical views of social media, spanning controversies like the 2018 Cambridge Analytica scandal but also more recent investigations into how much data apps like TikTok are able to ingest on users. This is something that the suit is also tapping into.

Dr. Gormsen is being represented by Quinn Emanuel, and the case is being funded by Innsworth, one of the largest litigation funders in the world, which takes a percentage if the case is successful. The UK's Competition Appeal Tribunal has certified the collective claim, allowing it to proceed to trial.

UK users of Facebook are automatically opted into the collective claim, meaning they must actively opt out if they do not wish to be included in any potential damages or financial settlement. There are no fees or other costs for inclusion.

The case has significant implications for the tech industry, particularly in the context of antitrust regulation. As Kate Vernon, partner and Head of Competition Litigation Practice at Quinn Emanuel, stated, "This groundbreaking case promises to redefine the application of competition law in the context of data exploitation. It sets a legal framework for approaching this pivotal matter and represents a significant shift in how we address the associated critical issues."

We have contacted Meta for comment and will update when and if we hear back.