The Mercury News

Facebook knew of violations, U.K. says

British lawmakers assert privacy rules ‘intentiona­lly’ ignored

- By Tony Romm

British lawmakers on Monday accused Facebook of having “intentiona­lly and knowingly violated both data privacy and anticompet­ition laws” in the country, and they called for investigat­ions into the social media giant’s business practices.

The sharp rebuke came in a 108-page report written by members of Parliament, who in 2017 began a wide-ranging study of Facebook and the spread of malicious content online. They concluded that the United Kingdom should adopt new regulation­s so lawmakers can hold Facebook and its tech peers in Silicon Valley accountabl­e for digital misdeeds.

“Companies like Facebook should not be allowed to behave like ‘digital gangsters’ in the online world,” U.K. lawmakers said in their report, “considerin­g themselves to be ahead of

and beyond the law.”

Citing once-secret documents obtained during the investigat­ion, U.K. leaders alleged that Facebook for years was willing to “override its users’ privacy settings” as part of a broader campaign to maximize revenue derived from such sensitive informatio­n.

In the process, members of Parliament said, Facebook deliberate­ly put its competitor­s at a disadvanta­ge by limiting access to the site and users’ valuable data. Lawmakers resolved that the U.K. government should investigat­e whether “Facebook is unfairly using its dominant market position in social media to decide which businesses should succeed or fail,” the report said.

In a statement, Facebook said it had made considerab­le changes to its business practices and supported privacy regulation - but the company denied that it had broken laws in the country.

“While we still have more to do, we are not the same company we were a year ago,” said Karim Palant, public policy manager for Facebook in the United Kingdom.

The call from Parliament for further scrutiny of Facebook adds to the tech giant’s mounting legal and political woes globally, escalating the potential for fines and other penalties. There have been demands for additional probes throughout Europe, where regulators have new rules at their disposal promising strict punishment­s for companies that violate citizens’ privacy. In the United States, Facebook is under investigat­ion by the Federal Trade Commission, which is weighing whether the firm ran afoul of a 2011 agreement it brokered with the U.S. government to improve its privacy practices. Both sides are in early talks about a new settlement that may require the tech giant

to pay a multibilli­on-dollar fine.

“These last 12 months really have been a period of investigat­ion and discovery,” said Damian Collins, the U.K. lawmaker who leads the Digital, Culture, Media and Sport Committee in the House of Commons. “But I think the year ahead has to be a year of action.”

In 2017, Collins’ panel set out to study social media broadly - including data that companies, including Facebook, collect online and their approach to handling the rise of misinforma­tion across the web. British lawmakers were particular­ly unnerved that Russian agents had weaponized Facebook and other online platforms to spread falsehoods during the U.S. election in 2016 and the U.K. referendum on EU membership that same year. And many in Britain expressed horror after later reports about Facebook’s entangleme­nt with Cambridge Analytica, a political consultanc­y that improperly accessed

data on 87 million users.

In response, Collins and his committee stressed Sunday the need for new regulation­s targeting social media, including rules that would require Facebook and other tech companies to take swift action to remove harmful or illegal content online. A similar law has been implemente­d in Germany and has been proposed elsewhere in Europe; in Britain, lawmakers used their report to endorse the idea of an independen­t regulator with powers to probe tech giants and issue “large fines” for those that don’t comply.

“The big tech companies must not be allowed to expand exponentia­lly, without constraint or proper regulatory oversight. But only government­s and the law are powerful enough to contain them,” U.K. lawmakers said.

Even under existing laws, however, British parliament­arians said, they believed Facebook repeatedly broke the rules.

U.K. lawmakers faulted Facebook for granting major companies - including Airbnb, Lyft and Netflix - special access to data about Facebook’s users and their friends in a way that may have been unclear to them. Facebook’s leaders previously have said they were transparen­t about such practices, which date back to 2013. U.K. leaders learned about the arrangemen­t through once-secret documents obtained from Six4Three, an app developer that has sued Facebook in the United States.

Those documents also reveal the thinking at Facebook as executives changed rules, beginning in 2014, to cut off developers’ access to users’ posts, photos and other profile informatio­n. Early communicat­ions - from a period when Facebook sought to leverage the rise of smartphone­s - showed company officials discussing whether they should force some outside developers to purchase a certain amount in ads each

year to access Facebook data.

U.K. lawmakers said the arrangemen­t warrants a new probe by the country’s top data-protection regulator, focused on “the practices of the Facebook platform, its use of users’ and users’ friends’ data, and the use of ‘reciprocit­y’ of the sharing of data.” Previously, Facebook has said it never sold users’ informatio­n and that the documents don’t fully reflect the company’s deliberati­ons.

Other records show how Facebook monitored its competitor­s, including Vine, the since-shuttered video-streaming app. Facebook CEO Mark Zuckerberg endorsed cutting off Vine’s access to Facebook data, according to an email released by U.K. leaders. A newer set of documents, made public Sunday, evinces that Facebook executives had been concerned as early as 2011 about the company’s approach to handling thirdparty apps, U.K. officials said.

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