A proposed class-action lawsuit filed this week in an Illinois federal court alleges that Meta Platforms (formerly Facebook) and Netflix entered into an unlawful agreement to limit video streaming.
According to the lawsuit, Meta agreed to limit its video-streaming services to avoid competing with Netflix. In return, Netflix purportedly provided Meta with user data to enhance Facebook's advertising algorithms.
The lawsuit claims this arrangement harmed consumers by reducing competition in the streaming market and compromising user privacy. Both companies have previously faced scrutiny over data-sharing practices and antitrust concerns.
This lawsuit adds to the ongoing legal challenges confronting Meta and Netflix regarding their business operations and competitive strategies.
A similar proposed class-action lawsuit was filed today in the U.S. District Court for the Central District of California.
The cases are in their early stages, with the court yet to determine whether the lawsuit will proceed as a class action.
Press reports said the companies also shared some private user messages but the companies denied the claim.