Key Points
- German Federal Cartel Office concludes proceedings against Meta over data usage concerns.
- Meta agrees to give users more control over how their data is collected and used across services.
- Users no longer need to consent to the broad collection of data from third-party apps and websites to use Facebook.
- The case sets a precedent for tech companies to address European antitrust and data privacy concerns.
Following intensive discussions, Germany’s Federal Cartel Office (FCO) announced on Thursday that it had ended its proceedings against Meta (META.O), the U.S.-based parent company of Facebook and Instagram. These talks resulted in Meta agreeing to implement measures addressing the regulator’s concerns over using personal data.
The crux of the issue lay in how Facebook collected and processed user data from multiple services, including data from third-party websites and apps. It combined it with a user’s Facebook account. German authorities raised concerns that users were forced to consent to this extensive data collection and integration if they wished to use Facebook’s services.
Andreas Mundt, the president of the Federal Cartel Office, emphasized the importance of the changes that Meta has agreed to implement. “The key point here is that using Facebook no longer requires consent to the unlimited collection and allocation of data to one’s own user account, even if the data does not actually arise in the Facebook service,” he explained.
Previously, users who disagreed with the broad scope of data collection could not fully utilize Facebook’s services. This practice raised antitrust and data protection concerns, particularly under Germany’s stringent competition and privacy laws and Europe’s General Data Protection Regulation (GDPR).
Under the agreement reached with the FCO, Meta will now offer users more choices regarding how their data is collected and used. Users can decide whether they want their data from other apps, websites, or services owned by Meta—such as Instagram, WhatsApp, or third-party apps—to be combined with their Facebook account. This step enhances user autonomy and privacy while addressing the monopolistic implications of Meta’s previous data practices.
The case, which has been ongoing for several years, marks a significant shift in how tech giants like Meta must approach data handling in Germany and possibly across the European Union. Germany’s approach could serve as a blueprint for other European regulators to ensure that tech companies comply with antitrust and data privacy regulations.
Meta has faced scrutiny from regulators worldwide over its handling of user data and its market dominance. Still, the resolution of this case shows the company’s willingness to cooperate with authorities and adjust its business practices.
The Federal Cartel Office’s decision to end proceedings reflects satisfaction with Meta’s commitment to these changes, though continued oversight is expected to ensure compliance.
