Germany’s Federal Cartel Office (Bundeskartellamt) has ruled that Facebook top hoarding users’ data since it amounts to anti-trust activities. The Bundeskartellamt investigated the way Facebook forced people to consent to data exploitation for three years before finally ruling that the social media giant must stop arm-twisting people to consent to data hoarding.
With the ruling, the way Facebook collects data from its 32 million users in Germany would be severely impacted.
Facebook Abused Its Dominant Market Position to Hoard Users’ Data
Facebook was found guilty by the Bundeskartellamt for hoarding users’ data on its platform, and on managed platforms such as WhatsApp and Instagram as well as third-party sites where content can be shared to Facebook. Since people’s data on Facebook, WhatsApp and Instagram among others are bundled together without their express approval, the EU regulator said people are not given control on how their data are used.
The regulator further ruled that with this approach, Facebook has been abusing its dominant market position. In order to continue serving the 32 million German users, Bundeskartellamt ruled that Facebook must modify its terms and conditions to enable people prevent data exploitation.
“The only choice the user has is either to accept the comprehensive combination of data or to refrain from using the social network,” said Bundeskartellamt President Andreas Mundt. “In such a difficult situation the user’s choice cannot be referred to as voluntary consent.”
Mundt revealed that the landmark ruling will break up the dominance of Facebook and other tech companies in the EU. He added that in the event that the social media giant chooses to continue bundle users’ data from WhatsApp and Instagram and other sources, then Facebook’s power for obtaining such data must be critically curtailed.
Facebook May Prove a Few Salient Points to the Bundeskartellamt in Court
Facebook in a blog post said it will appeal the ruling. The social media platform revealed it will file a complaint at the Dsseldorf Higher Regional Court in March. In the blog post, Facebook’s head of data protection in Ireland, Yvonne Cunnane, and associate general counsel, Nikhil Shanbhag, noted that the Bundeskartellamt failed to understand that users’ data is necessary for service improvement, users’ online security and protection from inappropriate content.
“The Bundeskartellamt underestimates the fierce competition we face in Germany, misinterprets our compliance with GDPR and undermines the mechanisms European law provides for ensuring consistent data protection standards across the EU,” Cunnane and Shanbhag wrote.
Facebook said it doesn’t mind heading to the courts to prove to the Bundeskartellamt thousands of tech companies around the world obtain and use user data the way it does. But the Bundeskartellamt against EU policies singled it out for anti-trust action.