On Tuesday, Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, suffered a significant blow as the Court of Justice of the European Union (CJEU) upheld a German data curb order. This ruling gives antitrust authorities, particularly in the Big Tech sector, more leeway in conducting investigations. The case originated when the German cartel office ordered Meta to cease collecting user data without consent, citing it as an abuse of its market power.
The crux of the matter was whether the German antitrust agency exceeded its authority by addressing data protection concerns, which are typically handled by national data protection authorities. Since Meta thrives on harvesting user data for behavioral advertising, a prevalent business model among Big Tech companies, its challenge to the German regulator’s findings led to a referral to the CJEU.
In response to the court’s decision, a spokesperson for Meta stated that they are evaluating the ruling and will provide further insights soon. The CJEU judges emphasized that antitrust investigations may necessitate an examination of an undertaking’s compliance with regulations beyond competition law. However, they also stressed that antitrust regulators must consider decisions or investigations conducted by the relevant supervisory authority.
The ruling was welcomed by the German cartel office, with its head, Andreas Mundt, highlighting the significance of data in establishing market power and the potential abuse of personal consumer data by internet giants. Benoit Coeure, the French competition agency’s counterpart, hailed the ruling as a milestone in viewing data protection as a competitive parameter.
Nevertheless, legal expert Thomas Graf cautioned that antitrust authorities may hesitate to delve into the intricacies of privacy law. He highlighted the necessity of demonstrating the relevance of privacy law to antitrust issues, including restrictive effects and abuse, while coordinating with GDPR authorities. GDPR, the European Union’s General Data Protection Regulation, imposes obligations on organizations collecting data related to EU citizens.
When asked about the ruling’s impact on his ongoing litigation with Meta, privacy activist Max Schrems expressed optimism, stating that the judgment will likely be advantageous to his case.
Through this ruling, the CJEU has expanded the scope of antitrust authorities in investigating Big Tech companies, while also acknowledging the importance of data protection. This decision may have far-reaching implications for the tech industry’s dynamics in Europe.
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