In a significant blow to Meta Platforms, Europe’s top court, the Court of Justice of the European Union (CJEU), has upheld a German data curb order that strikes at the core of Meta’s business model, Reuters reported. The ruling grants antitrust regulators greater power to investigate privacy breaches, potentially leading to more extensive probes into the practices of Big Tech companies.
The case revolved around an order issued by the German cartel office in 2019, which directed Meta (formerly known as Facebook) to cease collecting user data without explicit consent, citing the practice as an abuse of market power. Meta challenged the finding, prompting a German court to seek guidance from the CJEU. The central question was whether the German antitrust agency had overstepped its authority by employing antitrust measures to address concerns related to data protection, an area typically within the purview of national data protection authorities.
Meta, the parent company of popular platforms like Facebook, Instagram, and WhatsApp, contested the ruling. Reuters cited a Meta spokesperson who responded to the CJEU’s decision, stating, ‘We are evaluating the Court’s decision and will have more to say in due course.’
In its ruling, the CJEU judges stated that during antitrust investigations, it might be necessary for the relevant competition authority of a member state to examine whether the conduct of a company complies with regulations beyond those pertaining to competition law. However, the CJEU also emphasised that antitrust regulators must consider any decisions or investigations carried out by competent supervisory authorities under relevant data protection regulations.
The German cartel office welcomed the ruling, with its head, Andreas Mundt, highlighting the significance of data in establishing market power, Reuters reported. He stated, ‘The use of the very personal data of consumers by the large internet companies can also be abusive under antitrust law.’
Legal experts, however, remain cautious about the extent to which antitrust authorities will delve into privacy laws. Reuters cited Thomas Graf, a partner at law firm Cleary Gottlieb, who explained that it would still be necessary to demonstrate the relevance of privacy law to antitrust issues, including proving restrictive effects and abuse. Coordination with General Data Protection Regulation (GDPR) authorities would also be essential. The GDPR is an EU privacy and security law that imposes obligations on organizations targeting or collecting data related to individuals within the EU.
The ruling, identified as C-252/21 Meta Platforms and others (User conditions for a social network), marks a significant development in the intersection of antitrust and data protection law. As antitrust authorities gain greater leeway to investigate privacy concerns, it remains to be seen how they will navigate the complex landscape of privacy regulations while assessing potential abuses by major tech companies.
(With Inputs from Reuters)
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