CJEU Ruling Sets Precedent for Data Collection by Tech Companies

Yesterday, the Court of Justice of the European Union (CJEU) ruled that Meta, now known as Facebook, unlawfully displays personalized advertising to its users, setting a precedent for more convictions about data collection by dominant players in the digital world.

German Antitrust Authority Investigates Facebook

In early 2019, the German antitrust watchdog investigated whether Facebook was abusing its dominant position in the market to send more targeted advertisements to its users. The authority ruled that users had no choice but to approve the request to combine their personal information for the advertising practices, as the question was included in the user agreement for the platform.

CJEU Ruling Gives Antitrust Authorities Greater Powers

Facebook’s parent company appealed the ruling, which then came to the CJEU. The EU’s highest court ruled that antitrust authorities are indeed allowed to judge whether a company is acting in accordance with EU laws that do not fall within their jurisdiction. The CJEU ruling removes the legal basis for Facebook’s advertising practices, as it is necessary to collect personal data from European users under the GDPR.
The ruling of the CJEU gives European authorities the tools to punish illegal practices of large tech companies faster and harder. “In a complex digital economy, more than ever we need authorities that think outside the box and also ensure the protection of personal data when dominant companies break antitrust rules,” said Ursula Pachl, executive director of the European Commission.