Meta, the parent company of Facebook, Instagram, and WhatsApp, has reached a settlement with Texas for collecting biometric data without its users’ consent.
Why it matters. This is the most significant privacy settlement ever reached by a single state in the U.S., and most importantly, it sets a precedent for future lawsuits against tech giants.
The bottom line:
- Texas sued Meta in 2022 for using facial recognition without users’ permission.
- The “suggested tags” feature violated the state’s biometric privacy law.
- Meta will pay $1.4 billion, though it doesn’t admit wrongdoing.
- That’s more than double what it paid in 2020 ($650 million) for a similar case in Illinois.
The context. It’s not just the European Union or the federal government, even U.S. states are increasing the pressure on big tech companies, partly because the country has no federal privacy law.
As a result, some states, including Texas, Illinois, and Washington, that have laws restricting biometric data collection, such as faces or voices, are suing companies individually.
Reactions:
- “This historic settlement demonstrates our commitment to standing up to the world’s biggest technology companies and holding them accountable for breaking the law and violating Texans’ privacy rights,” Texas attorney general Kex Paxton said.
- “We are pleased to resolve this matter and look forward to exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers,” a Meta spokesperson stated in a release.
What’s next. Meta has more than a dozen similar lawsuits from other states. This settlement with Texas could serve as a model for future deals, skyrocketing Meta's bill.
While the fine is only 1% of Meta’s annual revenue ($135 billion in 2023), it shows all other tech companies the consequences of violating their users’ privacy. In the background, there’s growing regulatory pressure on using personal data.
This article was written by Javier Lacort and originally published in Spanish on Xataka.
Image | Xataka On with Midjourney
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