Facebook data use restricted

GERMAN antitrust authorities ruled yesterday against Facebook combining user data from different sources, saying it was exploiting its position as a dominant social media company in violation of European regulations.

The Federal Cartel Office, or Bundeskartellamt, said Facebook was guilty of “exploitative abuse” by forcing users to agree allow it to collect data from other Facebook-owned services like WhatsApp and Instagram, as well as third-party websites through the “Like” or “Share” features, and assign it to a user’s Facebook account.

“On the one hand there is a service provided to users free of charge,” Cartel Office president Andreas Mundt said. “On the other hand, the attractiveness and value of the advertising spaces increase with the amount and detail of user data.

“It is therefore precisely in the area of data collection and data use where Facebook, as a dominant company, must comply with the rules and laws.”

Facebook said it rejected the decision, and would appeal within the one-month deadline before it becomes final.

If the ruling is upheld, Facebook will be required to allow users to specifically approve data collected from other Facebook-owned sources and third-party websites be assigned to their accounts. The decision is not about Facebook’s processing of data generated by its own site, which the Cartel Office acknowledged is the business model for data-based social networks. |