Business Day

Facebook told to cut data gathering

- Douglas Busvine and Andreas Rinke Bonn

Facebook has been ordered to curb its data collection practices in Germany after a ruling that the world’s largest social network abused its market dominance to gather informatio­n about users without their knowledge or consent.

Facebook has been ordered to curb its data collection practices in Germany after a ruling that the world’s largest social network abused its market dominance to gather informatio­n about users without their knowledge or consent.

Facebook said it would appeal against the landmark ruling on Thursday by the Federal Cartel Office, the culminatio­n of a three-year probe, saying the antitrust watchdog underestim­ated the competitio­n it faced and undermined Europe-wide privacy rules that took effect in 2018.

“In future, Facebook will no longer be allowed to force its users to agree to the practicall­y unrestrict­ed collection and assigning of non-Facebook data to their Facebook accounts,” Cartel Office chief Andreas Mundt said.

The findings follow fierce global scrutiny of Facebook over a series of privacy lapses.

These have gone down badly with Germans, reflecting broader concerns over surveillan­ce that dates back to Germany’s history of Nazi and communist rule in the 20th century.

“Users are often unaware of this flow of data and cannot prevent it if they want to use the services,” justice minister Katarina Barley said, welcoming the ruling. “We need to be rigorous in tackling the abuse of power that comes with data.”

The cartel office objected in particular to how Facebook pools data on people from thirdparty apps, including its own WhatsApp and Instagram, and its online tracking of people who are not even members.

That includes tracking visitors to websites with an embedded Facebook “like” or share button — and pages where it observes people even though there is no obvious sign the social network is present.

The ruling does not yet have legal force and Facebook has a month to appeal, which the social network said it would do.

“We disagree with their conclusion­s and intend to appeal so that people in Germany continue to benefit fully from all our services,” Facebook said in a blog post.

“The Bundeskart­ellamt underestim­ates the fierce competitio­n we face in Germany, misinterpr­ets our compliance with the [General Data Protection Regulation] and threatens the mechanism European law provides for ensuring consistent data protection standards across the EU.”

In its order, the cartel office said it would only be possible to assign data from WhatsApp or Instagram to Facebook subject to the voluntary consent of users. Collecting data from third-party websites and assigning it to Facebook would only be allowed if users give their voluntary consent.

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