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From what's been gathered, it seems like Netflix and Facebook may have made a specific deal. This deal would help Netflix improve how it advertises on the social media website mentioned earlier.
The legal papers are crucial to a case about claims that two companies
acted unfairly, as claimed by two people from the United States, Maximilian
Klein and Sarah Grabert. They argue that the close relationship between the
companies led to Facebook making lots of money from ads by Netflix. The lawsuit
points out that in 2017, Netflix spent $150 million on ads.
The lawyers argued that after Netflix's co-founder, Reed Hastings,
joined Facebook's board, the two companies made a deal about an "Inbox
API". This deal supposedly let Netflix look at Facebook users' private
messages to better its ad plans on the website.
The lawsuit explains that for almost ten years, Netflix and Facebook
have had a relationship that benefits both sides. Netflix spent a lot of money
on ads with Facebook during that time. They also agreed to share data several
times. Netflix even got special access to the tools Facebook developers use,
which helped them work closely together. These efforts made Facebook's ad
targeting system better.
These tools, known as APIs, help different computer programs talk to
each other and share information.
According to the lawsuit, there was a special agreement between Facebook
and Netflix. It allowed Netflix to see Facebook users' private messages. Under
this deal, Facebook had to update Netflix every two weeks.
In 2018, it came out that Facebook had shared information about its
users with around 150 companies, including big names like Microsoft, Amazon,
and Netflix. At that time, Facebook said that these partnerships didn't violate
any privacy rules. On the other hand, Netflix said it never had the ability to
see Facebook users' private messages and never asked for it.
