A pioneering decision was published today by the German Antitrust Office (Bundeskartellamt). The decision states that Facebook must have the consent of the user before collecting data outside of the social network.
The German regulatory authorities ruled that the use of additional services by Facebook, such as WhatsApp, Instagram, Facebook Analytics and in general the social buttons that exist on every website on the internet, and collect data from users even when they are not using the social network, is illegal and should be banned for reasons of fair competition between technology companies.
Bundeskartellamt executives reported that Facebook could continue to collect data from each service but should store them separately so they can not merge with existing Facebook profiles unless the company has the express endorsement of the end user .
Facebook vs Bundeskartellamt
"In the future, FaceBook will no longer be able to force its users to agree to virtually unlimited data collection and outsourcing outside of FaceBook," said Andreas Mundt, President of Bundeskartellamt ().EN/DE).
"The combination of data from different sources makes it essential that Facebook is able to create a unique database for each individual user and thus gain market power," Mundt added.
The Bundeskartellamt has published an essay (PDF) detailing their findings and how unlimited data collection from the social network's users helped the company beat the competition during duration of years, allowing it to create a dominant position, almost impossible to overcome by others in the market.
The above report is the result of almost three years researchabout the data collection practices used by Facebook.
“We have been working with the Bundeskartellamt for almost three years and will continue our discussions. We disagree with their conclusions and intend to appeal to people in Germany to continue to benefit fully from all our services. " he said today Facebook.
Facebook claims its data collection practices fall under privacy laws and its new GDPR directive Europeanof the Union. However, it does not mention anything about antitrust legislation.
FaceBook has a month to appeal the ruling to a German court. The Bundeskartellamt decision at present has no legal authority. According to the service report, Bundeskartellamt would like Facebook to have "an implementation plan" to address these issues.
However, if FaceBook does not comply, "Bundeskartellamt decisions can be implemented through certain legal measures," the report said.
"These include the possibility of imposing a monetary fine (10% of the annual cycle work) or periodic fines (maximum amount of 10 million euros per fine) which can be imposed at specific time intervals.
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