Key Takeaways
- Meta is paying $1.4B to settle biometric data violations in Texas, but denies any guilt.
- The case was triggered by a defunct Facebook feature.
- Meta is nevertheless exploring further investments in the state.
Meta will pay out $1.4 billion to settle a Texas state lawsuit accusing it of abusing facial recognition features, Reuters reports. The suit was originally launched in 2022, and charged Meta with violating a 2009 law by way of a now-defunct Facebook feature, Tag Suggestions. The tech recommended people to tag in photos and videos, but it’s alleged that Meta captured biometric info “billions of times” without users’ consent.
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An initial settlement agreement was reached in May, staving off a trial by a matter of weeks. Meta is still denying any wrongdoing — but also appears to be cozying up to Texas, with a spokesperson saying that the company is “exploring future opportunities to deepen our business investments in Texas, including potentially developing data centers.” There are already Meta offices in several locations throughout the state, namely Austin, Houston, Temple, and the Dallas-Fort Worth area.
The state remains embroiled in a case against Google over the same law. Google’s violations are said to involve a range of products, from Google Photos and Google Assistant to the camera-equipped Nest Hub Max. In theory the company could owe up to $25,000 per violation, so it’s likely to settle out of court to avoid a serious financial hit.
Treading a fine line
Meta is no stranger to privacy controversies, such as the Cambridge Analytical scandal, which may have influenced the 2016 US presidential election. The public backlash from such incidents has forced the company to become more attentive to privacy, although it can only go so far — its business model is dependent on being able to serve up targeted ads. That involves scraping publicly available info such as your city and country.
The Texas case isn’t even the first time it has faced a facial recognition lawsuit. The state of Illinois launched a similar action in 2015, ultimately prompting Meta to settle for $650 million in 2020. The company likewise denied any wrongdoing when it agreed to that deal.
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