Meta Platforms-owned Facebook believes an Australian court has no jurisdiction to hear a criminal case brought against it by mining magnate Andrew Forrest, who claims the tech giant failed to stop clickbait advertising scams using his image.
The case in the Magistrates Court of Western Australia is believed to represent the first time Facebook has faced criminal charges.
Dr Forrest, the founder of Perth-based Fortescue Metals Group, initiated the case, alongside civil proceedings in California, over the use of his image in scams that appear on the social media company's platform.
The three charges being considered by the Perth court allege Facebook was criminally reckless by not taking sufficient steps to stop its platform being used to display scam advertisements used to defraud users in Australia.
During an initial hearing on Monday, Dr Forrest's legal team said it had received a letter from Facebook's legal representatives, stating the company would not appear because it did not believe the court had jurisdiction.
The criminal charges, brought under Part 10 of the Commonwealth Criminal Code, have the consent of the Commonwealth Attorney-General.
Sam Vandongen, representing Dr Forrest, argued that Commonwealth laws established that proceedings could occur against companies "incorporated in this state and elsewhere".
In the absence of an appearance by the accused, the court entered a plea of not guilty on Meta's behalf and adjourned the matter until June 17.
"In the event there is any jurisdiction matter that may arise they may be heard at a later date once the accused has entered an appearance," said magistrate Brionie Ayling.
Outside court, Simon Clarke, representing Dr Forrest, said the matter of jurisdiction was relatively straightforward.
"I would be surprised if Facebook didn't take every step to contest (this matter)," he said.
"These are significant criminal charges."
It is alleged scam advertisements using Dr Forrest's image promoting bogus investment schemes first appeared on Facebook in March 2019.
In the three years since, Facebook has failed to take sufficient action to prevent its systems being used to commit crime, Dr Forrest's legal team claims.
The iron ore billionaire has made repeated requests to Facebook, including an open letter to Facebook co-founder Mark Zuckerberg, to stop allowing his image, and those of other well-known Australians, be used to promote such schemes.
The Australian Competition and Consumer Commission is also investigating the ads, which purport to show public figures endorsing schemes that are actually scams.
In February, Dr Forrest said he had taken the action out of concern for innocent Australians being scammed.
