- Australia’s Federal Court delivers a $14 million fine to Meta Platforms for misleading data collection practices via its now-defunct app, Onavo.
- The legal action was initiated by the Australian Competition and Consumer Commission (ACCC), claiming Onavo app, under the guise of privacy protection, was secretly harvesting user data.
- The ruling is not the end for Meta’s legal troubles in Australia, with another ongoing lawsuit concerning the company’s ties with Cambridge Analytica.
As the sun dawned over Australia, a significant $14 million fiscal blow landed squarely on the doorstep of Meta Platforms. This substantial financial penalty is the latest fallout of a dispute concerning data collection practices, stemming from Meta’s defunct mobile app, Onavo.
The legal ramifications were set in motion after Australia’s Federal Court concluded a civil action spearheaded by the Australian Competition and Consumer Commission (ACCC). The court case revealed that Meta had used deceptive tactics with its Onavo app, which was purported to be a protector of user privacy. However, the stark reality of the app’s operations painted a vastly different picture.
The Onavo app was actually a product from Meta’s subsidiary, Facebook Israel, operating under the radar as a clandestine data collector. It monitored users’ whereabouts, tracked the frequency of their app usage, and logged browsing habits. The data, covertly gathered, subsequently ended up feeding Meta’s advertising objectives. This particular accusation was validated in the formal judgment composed by Judge Wendy Abraham.
In an attempt to soften the blow of the hefty penalty, Meta highlighted the fact that the ACCC had accepted its unintentional misleading of users. It emphasized its strides towards increased transparency over recent years, and its efforts to return more data control back to the users.
This legal rebuke puts a period to a chapter of Meta’s tumultuous legal narrative in Australia concerning its user data management policies. It’s worth noting this narrative has its roots in the notorious scandal involving Meta’s association with data analysis firm Cambridge Analytica during the contentious 2016 US elections.
However, the courthouse drama isn’t ready to roll the credits for Meta just yet. Another civil lawsuit is on the horizon, filed by the Office of the Information Commissioner, which is investigating Meta’s involvement with Cambridge Analytica on Australian soil. This sets the stage for another legal tussle concerning data privacy for the tech company.
Australia Navigates Crypto Waters: A Forward-Looking Approach
The Australian government is steering the financial sector into a digitally innovative era. The Reserve Bank of Australia is nearing the completion of the eAUD project, an exploratory pilot program, examining the potential applications and regulatory aspects of a national Central Bank Digital Currency (CBDC). The experiment, launched on a private Ethereum platform, reflects Australia’s cautious but active interest in digital currencies, a sentiment that resonates with the nation’s populace. One in four Australians now own cryptocurrencies, signaling a rising trend amongst the younger, technologically adept demographic.
Moving to foster a secure and robust cryptocurrency market, the government plans to introduce a series of regulatory measures in 2023. This initiative emerges in response to recent market instabilities and aims to create a safer environment for digital asset exchanges, stablecoins, and custody services. Furthermore, acknowledging the growing global influence of foreign CBDCs, the Australian government is contemplating supervisory protocols to oversee these currencies and maintain domestic control. These forward-looking measures illustrate Australia’s readiness to embrace the potential of blockchain technology while prioritizing consumer protection and competitive positioning in the digital finance landscape.
