On February 7, 2019, the Bundeskartellamt (German competition
authority) decided to impose restrictions on Facebook regarding its processing
of user data.
The German competition authority
criticized Facebook for collecting user data on non-Facebook platforms, like
Instagram, WhatsApp and other sites using the “Like” button, and combining all
the collected data without expressly asking users for their consent. Facebook
argued that users consented when they created a Facebook account. Similar to
most websites, users can either accept all the terms and conditions imposed by
Facebook or choose to not use Facebook. They have no other option.
According to the German
competition authority, this practice may have helped Facebook reach a dominant
market position.
With this ruling, the German
competition authority imposed the following restriction: Facebook can continue
to collect data on its own platforms but will have to ask for the explicit and informed
consent of the users to collect, use and combine data from non-Facebook
websites and apps. The restriction will not only protect German Facebook users
(about 32 million), but could also influence the competition authorities and
data protection authorities of all other European countries, which already
monitor Facebook’s actions very closely.
Facebook has one year to become
compliant with this ruling. The company is facing monthly penalties of up to 10
million euros (about $11.3 million) if it does not cooperate. But the company
already announced that it will appeal the decision.
This is the second time within a
few days that a national authority of the European Union is ruling against a
major tech company. On January 21, 2019, the French data protection authority
fined Google 50 million euros (about $56.6 million) for data collection infringements.
Is this the beginning of a change in the data processing industry?
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