Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Meta criticises German antitrust watchdog's 'flawed' data curb order

Published 10/05/2022, 11:09
Updated 10/05/2022, 13:16
© Reuters. FILE PHOTO: A sign is seen outside of the inaugural physical store of Facebook-owner Meta Platforms Inc in Burlingame, California, U.S. May 4, 2022.  REUTERS/Brittany Hosea-Small

By Foo Yun Chee

LUXEMBOURG (Reuters) -Meta Platforms, owner of Facebook (NASDAQ:FB), on Tuesday criticised a landmark German antitrust order to curb its data collection as 'clearly flawed' and which undermines EU data protection rules.

Meta's criticism of the German antitrust watchdog came after the latter in 2019 said the world's largest social network had abused its market power by collecting users' data without their consent and ordered it to stop.

The competition enforcer said the data harvest included users' browsing habits when they visited a website with a Facebook 'like' button on it - even if an internet surfer didn't click on that button.

The case underscores the mounting regulatory scrutiny worldwide of U.S. tech giants and measures to rein in their power.

In the German case, however, the issue is also whether the watchdog exceeded its authority by using its antitrust power to address data protection concerns.

Meta challenged the decision at a German court which subsequently sought guidance from the Court of Justice of the European Union (CJEU).

The German antitrust order was "clearly flawed" with its "far reaching restriction on Facebook's data processing", Meta lawyer Hans-Georg Kamann told the panel of 15 judges.

He criticised the German watchdog for not cooperating with the Irish data protection regulator which supervises Facebook because its European headquarters is in Ireland.

"The Bundeskartellamt has openly undermined the substantive and procedural requirements of GDPR (General Data Protection Regulation) law," Kamann said.

Joerg Nothdurft, lawyer for the German watchdog, dismissed the criticism, saying there had been contact with data protection regulators.

The German government defended the antitrust decision, saying that it was imperative for the competition enforcer to make data protection assessment as part of its investigation as online marketplaces use users' data to gain market power.

The German order "serves the objective of protecting free competition" and was not about data protection, its lawyer Philipp Krueger said.

© Reuters. FILE PHOTO: A sign is seen outside of the inaugural physical store of Facebook-owner Meta Platforms Inc in Burlingame, California, U.S. May 4, 2022.  REUTERS/Brittany Hosea-Small

The CJEU court adviser will give her non-binding opinion on Sept. 20, with judges expected to follow with a ruling in the coming months.

The case is C-252/21 Meta Platforms and others.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.