Facebook ordered to collect less data by German regulatory body
● Social media giant ‘abused its dominant position’ to target adverts
German authorities has ruled Facebook should not be allowed to use customer data from other apps and websites to help target advertisements shown on their Facebook pages without their explicit consent, saying it was exploiting its dominant position in social media.
The Federal Cartel Office, or Bundeskartellamt, said Facebook was guilty of “exploitative abuse” by forcing users to agree to allow it to collect data from other Facebook-owned services like Whatsapp and Instagram, as well as thirdparty websites through the “like” or “share” features.
“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 applicable in Germany and Europe.”
Facebook said it rejected the decision and would appeal within the one-month timeframe before the ruling 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 like Facebook.
Facebook said that with its ruling, the Cartel Office underestimates the competition Facebook has in Germany from Youtube, Snapchat, Twitter and others in calling it a “dominant company”.
The social media platform has also argued the ruling misinterprets Facebook’s compliance with regulations and undermines mechanisms
provided for in European law ensuring consistent data protection standards.
“The Bundeskartellamt’s decision misapplies German competition law to set different rules that apply to only one company,” Facebook said.
In ruling that Facebook was a “dominant company”, the Cartel Office said it was subject to “special obligations under competition law”.
The watchdog said it “must take into account that Facebook users practically cannot switch to other social networks”.
“The only choice the user has is either to accept the comprehensive combination of data or to refrain from using the social network,” the office said.
“In such a difficult situation, the user’s choice cannot be referred to as voluntary consent.”
The regulatory body said many users were not aware Facebook was able to “collect an almost unlimited amount of any type of user data from third party sources”, which allows it to better target specific advertisements to specific user’s interests.
“By combining data from its own website, company-owned services and the analysis of third party websites, Facebook obtains very detailed profiles of its users and knows what they are doing online,” Ms Mundt said.