TLDR:
Germany ruled that Facebook’s collection of user data without explicit consent of the users in question was exploitative. This creates a ripple effect; if Germany cared enough about user data being exploited, will other countries take similar actions against Facebook?
Facebook is still under siege about its data-driven advertising venture. In an unusual move, a new battlefront has been opened up in Germany. The power structure that regulates the data industry in Germany, the Federal Cartel Office (FCO), ruled that Facebook in essence coerced data from users. In other words, user data would have to be shared in order for them to use the platform.
As Facebook owns other social media platforms, such as Instagram and What’s App, Facebook can track user data even without users logging in.
Facebook disagreed with the ruling in a blog post that followed it. In the statement, they claimed that they faced fierce competition in Germany. According to them, their presence in the country was a far cry from a dominating one. If they don’t appeal the ruling, they may have to restructure the way they collect data, requiring the consent of its users.
Although this is certainly a problem Facebook has to contend with, it creates a potential ripple effect for other countries to take steps to protect the data of their citizens.
But it’s not quite over for Facebook. In addition to having to deal with consumer data rulings, they also have to worry about brushing up against antitrust laws. Germany’s users alone make up 80% of its market share.
Consumers have narrow choices in their buying habits because Facebook bumps out competition and takes data without so much as notifying users. The big question now is if Germany cares about the data of its users, will their actions establish a precedent for other countries to do the same? And if so, what will Facebook’s response be?
In addition to making waves at these ends, it has also created two bothersome issues. The first problem is that this case hints that customers have to worry about the privacy of their data, companies have to deal with anti-trust regulation. It also alludes to the fact of when and where the waters will begin to ripple.
Original article from DMN on 08 February 2019.
