German Antitrust Watchdog Expected to Take Action on Facebook

The Federal Cartel Office, a German antitrust watchdog, has plans to take action against Facebook in relation to user data privacy, according to a report by Reuters.

Reuters reports that the German antitrust watchdog, The Federal Cartel Office, is expected to investigate Facebook in relation to its social media market dominance and its collection of personal data allegedly without users knowledge or explicit consent. This investigation comes after Facebook’s user data scandal this year in which the personal details of 87 million users was allegedly accessed without their consent. A number of global influencing campaigns were also discovered on the platform which may be used to influence voters and elections, another potential concern for the Germans.

The Federal Cartel Office is focusing on Facebook’s collection of user data via third-party apps, through its own products such as Instagram and WhatsApp, and the company’s online tracking of individuals who aren’t even users of Facebook. Cartel Office President Andreas Mundt said that “We are conscious that this should, and must go quickly,” and stated that he hoped to take “first steps” this year.

Unlike European Union investigations into Google which ended in multibillion-dollar fines, this investigation is not expected to inflict monetary penalties on Facebook, but the company could be forced to address issues raised by the Federal Cartel Office following their investigation.

Facebook reportedly responded to the Cartel Office’s request for information, and the antitrust group is reviewing new features that Facebook is said to be implementing in the near future, such as a “clear history” option announced by Facebook CEO Mark Zuckerberg in May, which would erase information stored on Facebook about their browsing habits.

Mundt stated that the Cartel Office would: “need to establish whether this affects our investigation and addresses our concerns.” Mundt also confirmed that the Cartel Office is considering launching an investigation into the e-commerce industry focusing on “hybrid” platforms such as Amazon which sells their own products as well as those of third-party sellers.

“Our question is: what is the relationship between the platform, which itself is a very powerful trader, and the traders who use the platform?” said Mundt, adding that Amazon was the best-known company engaging in this business model but the investigation would be widespread across many platforms.