Meta Enhances User Data Control, Resolving German Antitrust Dispute

Germany’s Federal Cartel Office announced on Thursday that Meta, the parent company of Facebook, has implemented significant changes to enhance user control over data usage on its platforms, effectively resolving a long-standing dispute. According to New Age, these adjustments mark a turning point in the ongoing oversight of major tech companies by German authorities.

The regulatory body initially ordered Meta, then known as Facebook, to cease merging user data from its various subsidiaries and external websites without user consent back in 2019. Following the decision, Meta filed legal challenges but faced multiple setbacks in both German and European courts. As a result, the company was compelled to adapt its practices to meet the regulator’s requirements.

In a statement, Andreas Mundt, president of the Federal Cartel Office, emphasized the significance of these changes, stating, “Users now have much greater control over how their data are combined.” Among the new measures introduced is an ‘accounts center’ that allows users to keep data from different Meta platforms, including Facebook and Instagram, distinct from one another. Additionally, the company has implemented new cookie settings that separate Facebook data from other data sources.

Prominent notifications will now appear for users when they log into Facebook, directing them to updated consent options designed to improve transparency. Furthermore, Meta has committed to retaining user data solely for security purposes, with a clear timeframe for how long this data will be stored.

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The Federal Cartel Office has declared these measures “sufficiently effective” to conclude the case, noting that Meta has also withdrawn a pending appeal against the agency’s previous ruling. As per Reuters, the cartel office indicated that the changes have either been implemented or are set to be rolled out in the coming weeks.

Mundt hailed the agency’s 2019 ruling as “groundbreaking,” highlighting the considerable adjustments Meta has made to its data handling policies. He remarked, “The main change is that using the Facebook service no longer requires users to consent to Meta collecting a limitless amount of data and linking such data to their user accounts, even if these data are not even generated while using Facebook.”

The recent developments follow the introduction of the German Competition Act in 2021, which has given the Federal Cartel Office enhanced authority to monitor and combat anti-competitive behavior among major tech firms. This new legislative framework has led to increased scrutiny not only of Meta but also of other tech giants, including Microsoft, Amazon, Apple, and Alphabet, the parent company of Google.

Source: New Age