Wednesday, July 31, 2024

Texas says Meta to pay $1.4 bn to settle photo-tagging lawsuit

ACTING LIKE THE EU

By AFP
July 30, 2024


Meta has been steadily ramping up defenses for young users of its apps in the aftermath of accusations it put profit over their well-being - Copyright GETTY IMAGES NORTH AMERICA/AFP Patrick Smith

Meta has agreed to pay $1.4 billion to settle a lawsuit accusing it of violating a Texas state privacy law with a feature for “tagging” friends in Facebook photos, according to a deal finalized Tuesday.

Meta agreed to pay the money over five years to settle the claims accusing the social networking giant of unlawfully capturing biometric data of Facebook users in Texas.

The lawsuit said Meta did not get users’ permission before enabling its software to recognize and “tag” people in pictures, according to a court filing.

“I’m proud to announce that we have reached the largest settlement ever obtained from an action brought by a single state,” State Attorney General Ken Paxton said in a statement, calling the settlement “historic.”

The lawsuit, filed in early 2022, was the first time Texas had gone to court to accuse a tech firm of violating its “Capture or Use of Biometric Identifier Act”, according to Paxton.

“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 told AFP, noting the settlement includes an agreement that there was no wrongdoing.

Meta rolled out the photo tagging feature in 2011, running facial recognition on photos uploaded to Facebook without asking users for consent, according to the suit.


Spain watchdog fines Booking.com 413 mn euros


By AFP
July 30, 2024


Online travel agency Booking.com is estimated to have a market share above 60 percent in Europe and between 70 and 90 percent in Spain - Copyright AFP Jade GAO

Spain’s competition watchdog said Tuesday it had slapped online travel agency Booking.com with a record 413-million-euro fine for “abusing its dominant position” during the past five years.

“These practices have affected hotels located in Spain and other online travel agencies that compete with the platform. Its terms and conditions create an inequitable imbalance in the commercial relationship with hotels located in Spain,” the authority, known by its acronym CNMC, said in a statement.

“By better positioning hotels with more bookings on Booking.com, other online agencies have been prevented from entering the market or expanding,” it added.

This is the largest fine ever imposed by the CNMC, a spokeswoman for the authority told AFP.

The regulator said Booking.com’s market share in Spain, the world’s second most visited country after France, during the period under investigation was between 70 percent and 90 percent.

Booking.com said it “strongly disagreed” with the CNMC’s findings.

The platform said it would appeal the authority’s “unprecedented decision”, adding that it did not take into account programs it offers its “accommodation partners” to help them boost their business.

The online travel agency, whose parent company Booking Holdings is headquartered in the United States, is a dominant player with a market share in Europe of more than 60 percent.

In May, the European Union added Booking.com to its list of digital companies big enough to fall under tougher competition rules, giving the firm six months to prepare for compliance with the landmark Digital Markets Act (DMA).

The rules aim to level the playing field in the digital market, ensuring EU users have more options when choosing products.

Brussels said that tougher regulation of Booking.com would mean that holidaymakers would “start benefiting from more choice” and hotels would “have more business opportunities”.

Hungary’s competition watchdog earlier this month slapped Booking.com with a second fine for failing to cease its “unfair” business practices, including putting psychological pressure on customers.

In 2020, the firm was fined 2.5 billion forint ($7 million) by the Hungarian Competition Authority for aggressive sales tactics.

And on July 15 the authority hit Booking.com with an additional penalty of 382.5 million forint after a follow-up investigation showed the company had continued its unfair practices.



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