The chair of the Federal Trade Commission Linda Khan has called for enforcement of antitrust laws to spur innovations in technology even as the commission has proposed a blanket prohibition preventing Facebook from profiting from data it collects for users under 18.
Khan told CNBC’s “Squawk Box” that antitrust enforcement can help the U.S. stay ahead of China in creating “cutting-edge technologies,” CNBC said.
“What history and experience have shown us is what best positions the United States to compete internationally, to stay ahead internationally, is making sure that we are a home for innovation,” Khan said, according to CNBC. “And what best produces breakthrough innovations, cutting edge technologies, is competition.
"I think we've seen time and time again monopolies and incumbent firms arguing that they need to preserve their monopoly to make sure that the U.S. stays ahead," Khan added, according to the release. "But historically, the U.S. has instead enforced competition laws, enforced antitrust and that is what has led us to be the home of cutting-edge technologies.”
The FTC proposed a prohibition May 3 to Facebook’s ability to monetize youth data, according to an FTC news release. The prohibition aims to prevent Facebook from exploiting the personal data of users under the age of 18 for financial gain, signaling a significant step toward safeguarding the privacy of young individuals.
The commission said Facebook misled parents about the control they had through Messenger Kids app and misrepresented the access Facebook gave “some app developers to private user data,” the release reported. Recent reported revelations regarding the company's targeted advertising strategies aimed at minors have intensified calls for stricter regulation.
By prohibiting Facebook from monetizing youth data altogether, the FTC aims to curtail the potential for exploitation and protect the privacy and well-being of young users who may be particularly vulnerable to manipulative advertising tactics, according to the release.
“The FTC’s approach is an abuse of authority and wrong on the facts,” Andy Stone, Meta spokesperson, said in a May 3 post on Twitter. “We have not violated the agreement. KEY POINT: The two privacy incidents the FTC identified today to support their action were discovered by us, fixed and publicly disclosed three years ago."
Critics of the social media site applauded the FTC's action, according to AP News. Parental organizations and advocacy groups made up of pediatricians and psychologists contested Facebook's claim that the app Messanger Kids was providing a valuable service for kids.
