BENTON - Meta Platforms posted notice on March 22 that it would appeal denial of arbitration for an unfair competition claim that 107.1 FM owner Metroplex Communications of Alton brought in U.S. district court.
District Judge Staci Yandle ruled on March 5 that the dispute fell outside the scope of an arbitration agreement that Facebook users accept.
She found Metroplex alleged that Meta damaged it as a competitor and not as a user.
Metroplex sued Meta in 2022, claiming it inflated the number of people Facebook reached in order to divert advertisers from its competitors.
The clerk randomly assigned District Judge David Dugan.
Meta moved for arbitration, and at a hearing on the motion Dugan said he used Facebook when he ran for circuit judge in Madison County.
The hearing continued, but he recused himself six days later.
Yandle replaced him and decided she could exercise jurisdiction.
She found the claim didn’t arise out of access or use of Meta products, “but is rather a lawsuit that would exist even if Metroplex had never entered into any agreements with Meta.”
“The language of the instant arbitration clause does not express an intent to arbitrate any dispute that could ever arise between the parties, but only those relating to the consumer’s use of the Meta products,” she wrote.
Kevin Green of Goldenberg Heller in Edwardsville represents Metroplex.
Gary Feinerman of Chicago filed Meta’s appeal notice.