The Meta Class Action: Key Implications for UK Commercial Law

The £2.1 billion class action against Meta Platforms Inc., certified by the Competition Appeal Tribunal (CAT) in February 2024, is set to redefine aspects of UK commercial law. The case, brought by Dr Liza Lovdahl Gormsen, alleges Meta abused its dominant position by monetising users' data unfairly, marking a pivotal moment in competition law enforcement.

A New Era of UK Class Actions

The CAT’s approval of the claim as a Collective Proceedings Order (CPO) reflects the growing role of collective actions, which have gained momentum following the Consumer Rights Act 2015. Similar cases against Apple and Microsoft highlight this trend, where tech giants face heightened scrutiny for allegedly exploiting market dominance. The Meta case further demonstrates the accessibility of collective claims as a tool for consumer redress in the UK.

Implications for Competition Law

1. Strengthening Accountability in Digital Markets

   
   

   This case challenges the unchecked dominance of tech platforms. If successful, it could force companies like Meta to adopt fairer practices in how they collect and monetise user data, setting a precedent for future claims.

   
   

2. Redefining the Value of Data

   
   

   Central to the case is the issue of whether Meta’s terms provided users with a fair value exchange for their data. A ruling against Meta could compel corporations to reassess their approach to data monetisation, ensuring transparency and fairness.

   
   

3. Enforcing Market Fairness

   
   

   The CAT’s decision signals a shift towards stricter enforcement of competition laws, particularly in digital markets. It highlights the willingness of UK courts to address systemic market abuses and empower consumers through collective redress mechanisms.

   
   

Role of Herbert Smith Freehills

Representing Meta, Herbert Smith Freehills (HSF) brings critical expertise in competition litigation. For future trainees, this demonstrates the complexity and high stakes of defending clients facing significant regulatory and reputational challenges in evolving legal landscapes.

Key Takeaway for Future Trainees

This case underscores the growing importance of collective actions and competition law in the UK, particularly in tech-driven markets. For aspiring solicitors, it highlights the need for adaptability, a deep understanding of consumer law, and the ability to navigate complex, high-profile disputes.

The Meta case isn’t just a legal battle—it’s shaping the future of how law interacts with technology and consumer rights.